Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

- 97 -On December 23, 2004, the BSP approved the Parent Bank’s application to issue intwo or more tranches of up to P5,000 worth of peso-denominated LTNCDs within oneyear from date of approval. The first tranche amounting to P2,100 was issued onJune 1, 2005 and matured on June 2, 2010 and the second tranche amounting to P2,900was issued on November 23, 2005 and matured on November 24, 2010. The firsttranche paid a variable interest based on 3M PDST-F (formerly MART 1) plus 0.25%spread while the second tranche paid a fixed rate of 9.73%. Also, on September 25,2006, the BSP approved the Parent Bank’s application to issue another P5,000 LTNCDsin one tranche. The P5,000 LTNCDs, with a fixed interest rate of 8.25% per annum,were issued on October 4, 2006 and matured on November 3, 2011. These are presentedas part of Time Deposits under Deposit Liabilities account in the 2010 statement offinancial position.Also on April 26, 2007, the Monetary Board (MB) of the BSP authorized BDO Privateto issue up to P5,000 worth of fixed rate or zero coupon LTNCDs in one or moretranches. The first tranche, consisting of P2,191 in zero coupon LTNCDs, was issuedon June 18, 2007 and will mature on December 18, 2012. These LTNCDs arepresented, net of discount and included P17 in capitalized transaction costs, as part ofthe Time Deposit Liabilities account in the statements of financial position.Under existing BSP regulations, non-FCDU deposit liabilities of the BDO UnibankGroup are subject to liquidity reserve requirement equivalent to 11.0% both in 2011and 2010 and statutory reserve equivalent to 10.0% and 8.0% in 2011 and 2010,respectively. As of December 31, 2011, the BDO Unibank Group is in compliant withthese regulations.16. BILLS PAYABLEThis account is composed of the following:BDO Unibank GroupParent Bank2011 2010 2011 2010Deposit substitutes P 17,152 P 8,304 P 17,149 P 8,031Foreign banks 13,694 26,096 13,694 25,876Senior notes 13,210 13,202 13,210 13,202PDIC 4,472 4,483 4,472 4,483BSP 968 1,445 968 1,445Local banks 132 131 132 131Others 9,846 12,200 1,753 2,913P 59,474 P 65,861 P 51,378 P 56,081