BDO raises P8.2B in upsized offering
Sy-led BDO Unibank Inc. raised P8.2 billion after upsizing its offering of long-term negotiable certificates of deposit which generated strong demand from both retail and institutional investors.
The offering was nearly 2.5 times oversubscribed, receiving P12.3 billion bids. This prompted BDO to jack up the size of the issue to P8.2 billion and shorten the offer period to April 26 or two days ahead of schedule.
The LTNCDs have a term of five and a half years with interest rate set at 4.375 percent per annum.
Other features of the LTNCD include tax exemption on interest income for individual investors if held for at least five years, quarterly interest payments, and deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor.
The offering is in line with BDO’s efforts to lengthen the maturity of its funding sources and support business expansion plans.
Deutsche Bank AG, Manila Branch and ING Bank N. V., Manila Branch were the the joint lead arrangers and selling agents for the issue, while BDO and BDO Private Bank were the other selling agents.