By James A. Loyola BDO Unibank, Inc. and Security Bank have successfully raised a total of P12.56 billion from their respective Long-Term Negotiable Certificates of Deposit issuances which were both oversubscribed. In a disclosure to the Philippine Stock Exchange, said it has upsized its issue of LTNCD to raise P6.5 billion from the original offer of P5.0 billion following solid demand from mostly retail investors. The bank said the LTNCD issuance is part of its efforts to diversify the maturity of its funding sources and support business expansion plans. This latest tranche of LTNCDs has a term of 5.5 years with a final interest rate of 4 percent per annum. The issue date is set for September 27, 2019, with maturity date on March 27, 2025. Other features of the LTNCD include: Tax exemption on interest income for individual investors if held for at least five years; quarterly interest payments; deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor; and negotiability subject to market conditions. ING Bank, N.V., Manila Branch (ING) acted as the Sole Arranger and Selling Agent for the issue, while BDO and BDO Private Bank are the other selling agents. Meanwhile, Security Bank raised P6.06 billion in its offer of LTNCDs, marking the second time the Bank has tapped the debt capital markets this year. This issuance was driven by solid demand from both retail and institutional investors, resulting in total subscriptions of P6.06 billion, exceeding the original offer of P5 billion, and allowing the Bank to successfully price the LTNCD at 4.00% percent despite rising interest rates and broader market volatility. “This issuance has firmly placed our credit amongst retail investors – the LTNCD gives the investing public the chance to further express their confidence in Security Bank’s stability and ability to grow,” said Security Bank Executive Vice President and Treasurer Raul Pedro.