BPI upsizes LTNCD issue to billion

Bank of the Philippine Islands (BPI) has issued R12.2 billion worth of Long-Term Negotiable Certificates of Time Deposit (LTNCTDs).

In a disclosure to the Philippine Stock Exchange, BPI said “the issue was met with strong demand, prompting the Bank to upsize from its initial offering of R5 billion to R12.2 billion, making the transaction the largest single LTNCTD issuance thus far.”

The LTNCTDs were listed yesterday at the Philippine Dealing Exchange Corp. (PDEx), the first instrument listed by BPI in the fixed income exchange. The listing allows investors to negotiate the instrument in the secondary market.

“This reflects the confidence of investors in BPI. The success of this offer will help us in our expansion plans as we continue to focus on shareholder value by pursuing sustainable growth and profitability,” said BPI President Cezar P. Consing.

This issuance is the first tranche of the R30-billion LTNCTD issuance program approved by the Bangko Sentral ng Pilipinas (BSP) for BPI.

In addition to supporting the Bank’s expansion plans, the issuance will diversify the Bank’s funding sources while offering investors an attractive investment instrument.

The LTNCTDs have a tenor of 5.5 years maturing on May 24, 2023 and an interest rate of 3.75 percent p.a. payable quarterly.

LTNCTDs are peso-denominated certificates of time deposit with a minimum maturity of five (5) years and are negotiable in the secondary market.

Historically, LTNCTDs offer higher interest rates than regular deposits. LTNCTDs are also insured with the PDIC subject to applicable rules and regulations on maximum insurance coverage.

ING Bank N.V., Manila Branch was tapped as the sole arranger for this issue and also acted as selling agent together with BPI Capital Corporation and BPI.