Sy-led Banco de Oro Unibank Inc. started to offer yesterday up to P5 billion worth of 5.5-year long term negotiable certificates of deposits.

The LTNCD will have an indicative annual yield of 3-3.25 percent and will be offered until November 29, the bank said in a statement.

Coupon rate will be determined and announced Friday next week while issue date is on December 11, it said.

“BDO, however, reserves the right to adjust the timing of the offer as needed,” it said.

Minimum investment for this type of securities is P100,000 and additional investments can be bought at increments of P50,000.

BDO tapped the Hongkong and Shanghai Banking Corporation and Deutsche Bank as Joint Lead Arrangers and Selling Agents for the issuance while selling agents are BDO, BDO Private Bank and Multinational Investment Bancorporation are the other selling agents.

This investment is tax exempt for individual investors if held for at least five years, has an insurance coverage of maximum of P500,000 and is negotiable “subject to market conditions.”

Issuance of LTNCDs aims to lengthen a bank’s funding sources maturity profile as well as support a financial institution’s medium-term growth target.

The latest time BDO issued LTNCD was last September after it issued P5 billion worth of securities.*PNA

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