BDO raises P8.2 billion from LTNCDs

BDO Unibank, Inc. raised P8.2 billion from its long-term negotiable certificates of deposit (LTNCD), which it wants to use to manage the bank’s liabilities.
At the ceremonial listing of the investment instruments on Monday, May 7, at the Philippine Dealing System (PDS) in Makati City, the Sy-led BDO said it raised P8.2 billion from the peso-denominated issue.
The notes will mature in 5.5 years and carry an interest rate of 4.375% to be paid quarterly until Nov. 7, 2023.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
Last month, the country’s biggest lender raised the size of its LTNCD offer to P8.2 billion from P5 billion amid robust demand from both retail and and institutional investors. — Karl Angelo N. Vidal