Investors swarm BDO’s long-term note offering
Talk about betting big!
BDO Unibank, Inc. said it breached a new milestone after raising a whooping P11.8 billion through its latest issuance of long-term negotiable certificates of deposit (LTNCD).
In a disclosure, the Sy-owned bank had to cut the two-week offer period by one day after customers and companies mobbed the offering, as the bank simply wanted to raise P5 billion initially. The strong demand for the 5.5-year papers fetched an annual return of 3.625%, and will be formally issued on Aug. 18.
“This transaction is the largest single issuance to date of LTNCDs by a local bank,” BDO said in a statement.
The bank dangled the long-term notes to raise fresh capital for debt management and to fund business expansions. Investors can avail of the offering via a minimum investment of P100,000 plus increments of P50,000.
For retail investors, interest proceeds will be tax-exempt if the amounts are kept intact for five years.
BDO is definitely reaping the gains for being the country’s biggest bank.