BDO to Issue Up to PhP5B LTNCDs

Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) announced a plan to issue up to PhP5 billion worth of Long Term Negotiable Certificates of Deposit (LTNCDs) as part of the Bank’s effort to support its medium-term growth objectives and lengthen the maturity profile of its funding sources. BDO’s consumer loans have been growing strongly recently.

LTNCDs are negotiable certificates of deposit with a designated maturity, and represent a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit. LTNCDs are covered by deposit insurance with the PDIC up to a maximum amount of PhP500,000.00 per depositor.

The LTNCDs will carry a maturity of seven (7) years. The indicative coupon rate will be based on the prevailing 7-year PDST-F benchmark, and will be finalized at the end of the offer period. Interest will be paid quarterly and will be tax exempt for individual investors if held for more than five years. The minimum investment is PhP100,000.00 with increments of P50,000.00. The offer period is from 26 September to 5 October 2012 with the issue date set for 15 October 2012. BDO, however, reserves the right to adjust the timing of the offer as needed.

Deutsche Bank AG, Manila Branch (DB) and The Hongkong and Shanghai Banking Corporation Limited (HSBC) are the Joint Lead Arrangers and Selling Agents for the LTNCD, while BDO and BDO Private Bank are the other selling agents.

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