BDO completes quick sale of US$123m LTCND

The Philippines’ largest bank said this was because of strong demand.

BDO Unibank, Inc. said it put an early close to the sale of Long Term Negotiable Certificates of Time Deposit (LTCND) worth US$123 million just three days after the offering began.

BDO said it closed the offer period early due to oversubscription from retail and institutional investors. Proceeds from the issue will be used to support the bank’s medium-term growth objectives and help lengthen the maturity profile of its funding sources.

The time deposit certificates will mature in 5-1/2 years after issue date and carry a coupon of 3.8% per annum. Interest wll be paid quarterly and will be tax-exempt for individual investors who hold the LTCND for at least five years. The settlement date is on March 25, 2013.

ING Bank N.V., and Standard Chartered Bank were the joint lead arrangers and selling agents for the LTNCD while BDO and BDO Private Bank were the other selling agents.