BPI launches Long-Term Negotiable Certificates of Time Deposit

MAKATI CITY, Philippines – Bank of the Philippine Islands (BPI) launches today its Long-Term Negotiable Certificates of Time Deposit (LTNCTDs) worth Php5 billion with option to upsize, to support the Bank’s expansion plans and 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 in the aggregate amount of Php30 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 Cezar P. Consing, BPI president and CEO. “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 will be 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 (5½) years and an indicative interest rate of 3.625% to 3.750% p.a. The final interest rate will be set prior to the end of the offer period. Interest on the LTNCTDs will be paid quarterly.

The minimum investment amount is set at Php100,000.00 and in increments of Php50,000.00. 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.

LTNCTDs are negotiable certificates of time deposit issued by banks, with a minimum maturity of five (5) years and denominated in Philippine Peso (Php). LTNCTDs usually have higher yields compared to regular time deposits or savings accounts.

Unlike regular time deposits, LTNCTDs cannot be pre-terminated by holders. However, investors can negotiate or transfer their holdings in the secondary market prior to maturity. Interest on LTNCTDs is tax-free for individual investors if the instrument is in the name of the individual holder and is held for at least five years. LTNCTDs are insured with the PDIC subject to applicable rules and regulations on maximum insurance coverage.

Interested investors in BPI LTNCTDs may go to any BPI branch. They may also call BPI at (02) 845-5505, (02) 816-9010, (02) 790-2144 (Metro Manila); (032) 231-1419 (Cebu); BPI Capital at (02) 845-5708, (02) 845-5901, (02) 845-5695, (02) 816-9616; ING at (02) 479-8704, (02) 479-8848.

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