BPI launches R5-B LTNCTD offering

Bank of the Philippine Islands (BPI) has launched its R5billion Long-Term Negotiable Certificates of Time Deposit (LTNCTDs), with option to upsize, to finance its expansion plans.

The bank said the issuance will also allow it to diversify funding sources while offering investors an attractive investment instrument.

Recently, the Bangko Sentral ng Pilipinas (BSP) approved the request of BPI to issue LTNCTDs amounting to R30 billion in one or more tranches within one year.

“We continue to diversify our funding sources as we cater to the changing financial needs of our clients," said BPI President and CEO Cezar P. Consing.

He added that, “this is our second time to offer LTNCTDs. The first in 2007 was a huge success and we are confident that with the attractive yield, relative safety, and flexibility of the LTNCTDs, we will have the same success with our latest offer.”

The offer period for the first tranche of LTNCTDs is from October 27, 2017 to November 16, 2017, with the Issue and Listing dates set for November 24, 2017.

The LTNCTDs will have a tenor of five and a half (5.5) years and an indicative interest rate of 3.625 percent to 3.750 percent per annum, to be paid quarterly. The final interest rate will be set prior to the end of the offer period.

The minimum investment amount is set at R100,000.00 and in increments of R50,000.00. ING Bank N.V., Manila Branch was tapped as the sole arranger of this deal and also acts as Selling Agent together with BPI Capital Corporation and BPI. (JAL)