BPI upsizes long-term time deposits offering to P12.2B amid strong demand

Ayala-led Bank of the Philippine Islands (BPI) said Friday it upsized its P5-billion offering of Long-Term Negotiable Certificates of Time Deposits (LTNCDs) to P12.2 billion amid strong demand from investors.

In a disclosure to the Philippine Stock Exchange, BPI said it issued the P12.2-billion LTNCDs. It said it is thus far the largest single LTNCTD issuance.

“This reflects the confidence of investors in BPI,” BPI president and CEO Cezar Consing said.

“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," Consing added.

The bank's LTNCTDs were also listed at the Philippine Dealing Exchange Corp. –its first instrument listed in the fixed income exchange.

The listing allows investors to negotiate the instrument in the secondary market.

This issuance is the first tranche of the P30-billion LTNCTD issuance program approved by the Bangko Sentral ng Pilipinas for BPI.

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

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

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

LTNCTDs are also insured with the Philippine Deposit and Insurance Corp. 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 Corp. and BPI. —Ted Cordero/LBG, GMA News