Treasury Registered Salesmen Donna Lyn T. Abes Nica Pauline T. Amahan Miguel Alberto T. Aragon Francis S. Beltran Nerly G. Borja Augusto Manuel M. Briones Nicole Francine Ariadne C. Chua Christian Rox T. Chua Antonio Basilio C. De Guzman Monette G. De Leon John Michael M. Enad Joseph Alfred R. Estiva Nina Francesca V. Gella Manolo B. Kimpo Jr. May M. Llabres Amy S. Masip Dino Joseph A. Ramirez Paul John T. Reyes Christopher Daniel A. Rosaldo Felipe Martin F. Timbol Fixed Income Government Securities (GS) are Peso-denominated unconditional debt obligations issued by the National Government of the Republic of the Philippines through its fiscal agent, the Bureau of Treasury (BTr). Treasury Bills Description T-Bills are short-term promissory notes issued by the National Government. T-Bills are the most actively-traded zero-coupon debt instruments. Minimum Deposit PHP 10,000.00 Term/Tenor 91, 182, 364 (subject to availability) Tax Feature Interest income subject to 20% final withholding tax Interest Computation Trust Discount Formula Manner of Purchase Through the Secondary Market Documentation Fixed Income Confirmation Advice (FICA) Liquidity Bank will provide liquidity for clients willing to sell securities subject to prevailing market rates for the remaining tenor of the T-Bills. Marketing Network Available at all Bank of Commerce branches nationwide (cut-off is at 3:30 PM) Best for Individual and Corporate clients who are looking for short-term and risk-free investment alternatives Treasury Bonds Fixed Rate Treasury Notes (FXTNs) Retail Treasury Bonds (RTBs) Description FXTNs are medium to long-term financial obligations issued by the National Government which promise to pay a specific sum of money with frequent fixed-rate semi-annual coupon payments at a specified future date. FXTNs have a known maturity and yield. RTBs are medium to long-term financial obligations issued by the National Government which promise to pay a specific sum of money with frequent fixed-rate quarterly coupon payments at a specified future date. RTBs have a known maturity and yield. Minimum Deposit PHP 10,000.00 (increments of PHP 10,000.00 thereafter) PHP 5,000.00 (PHP 10,000.00 for secondary market and increments of PHP 10,000.00 thereafter) Term/Tenor various tenors ranging from 2 years to 25 years various tenors ranging from 3 years to 25 years Tax Feature Interest income subject to 20% final withholding tax (except for Tax Exempt Institutions) Coupon Semi-Annual Quarterly Interest Computation Simple Interest/Add-on Manner of Purchase Through the Secondary Market Primary or Secondary Market Documentation Fixed Income Confirmation Advice (FICA) Liquidity Bank will provide liquidity for clients willing to sell securities subject to prevailing market rates for the remaining tenor of the security. Marketing Network Available at all Bank of Commerce branches nationwide (cut-off is at 3:30 PM) Best for Clients who are looking for medium to long-term and risk-free investment alternatives Corporate Bonds Preferred Shares Description Corporate Bonds are medium to long-term financial obligations issued by a Private Corporation which promise to pay a specific sum of money with frequent fixed-rate coupon payments at a specified future date Preferred shares or stocks are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued Minimum Deposit To be determined by the Issuer Term/Tenor To be determined by the Issuer Tax Feature Interest income subject to 20% final withholding tax (except for Tax Exempt Institutions) Interest income subject to 10% final withholding tax (except for Tax Exempt Institutions) Coupon/Dividend Rate (Preferred Shares) Semi-Annual/Quarterly Interest Computation Simple Interest/Add-on Manner of Purchase Primary Issuance/Secondary Market Documentation Application to Purchase (ATP) Liquidity Bank will provide liquidity for clients willing to sell securities subject to prevailing market rates for the remaining tenor of the security. Marketing Network Available at all Bank of Commerce branches nationwide (cut-off is at 11:30 PM) Best for Clients who are looking for medium to long-term and high-yielding instruments US Dollar Bonds Republic of the Philippines (ROP) Description ROPs are alternative investment vehicles which give investors access to US-dollar denominated bonds issued by the National government with frequent fixed-rate coupon payments at a specified future date. Minimum Deposit USD 200,000.00 Term/Tenor Various tenors ranging from 3 to 25 years from original issue date Interest Computation Simple Interest/Add-on Custodianship Fee 0.0155% per annum (based on the face value) Manner of Purchase Through the Secondary Market Documentation Fixed Income Confirmation Advice (FICA) Liquidity Bank will provide liquidity for clients willing to sell securities subject to prevailing market rates for the remaining term/tenor of the security Marketing Network Available at all Bank of Commerce Branches nationwide (cut-off is at 5:00 PM) Best for Clients who want to invest in a dollar denominated bonds with a tax-free feature Corporate Notes Corporate Notes are medium to long-term financial obligations issued by a Private Corporation which promise to pay a specific sum of money with frequent fixed-rate coupon payments at a specified future date. Minimum Deposit To be determined by the Issuer Term/Tenor To be determined by the Issuer Tax Feature Interest income subject to 20% final withholding tax May be tax-exempt for certain tenors Interest Computation Simple Interest / Add-on Manner of Purchase Primary Auction / Secondary Market Documentation Confirmation of Sale (COS) without recourse 3rd Party Custodianship documents Liquidity Bank will provide liquidity for clients willing to sell securities subject to prevailing market rates for the remaining tenor of the securities. Marketing Network Available at all Bank of Commerce branches nationwide (cut-off is at 4:00 PM) Advantage: Corporate Notes are issued by Private Corporations, thus provide higher yields. Best for: Individual and corporate clients who are looking for medium to long-term and high yielding investments. Foreign Exchange Spot FX Conversion Bank of Commerce will buy or sell one currency in terms of another currency for delivery within 2 banking days from deal date. The three two’s: Two currencies Two rates Two parties DIRECT Currencies expressed in US dollars per 1 unit of currency such as British pounds and Euro dollars. Also known as Volume Quotation Example : 1 GBP = USD 1.6670 INDIRECT Currencies expressed in currency per 1 unit of US Dollars such as Philippine Peso and Japanese yen. Also known as Price Quotation Example : 1 USD = PHP 47.10 COMMODITY CURRENCY This is the currency being priced, usually 1 unit or fixed amount of the currency. TERMS CURRENCY This is the currency used to express the price of the commodity, in varying amounts of the currency. USD / PHP 47.05 USD / JPY 90.30 EUR / USD 1.4920 TEXTUAL EXPRESSION First currency: COMMODITY CURRENCY Second Currency: TERMS CURRENCY DOLLAR PESO Verbal Jargon DOLLAR YEN EURO DOLLAR TWO-WAY PRICE Bid / Offer USD / PHP 41.70 – 41.75 USD / JPY 90.00 – 90.30 EUR / USD 1.4850 – 1.4920 LEFT FIGURE – BID: buying rate of the commodity currency from the point of view of the price maker. Selling rate from the point of view of the asking party. RIGHT FIGURE – OFFER: Selling rate of the commodity currency from the point of view of the price maker. Buying rate from the point of view of the asking party. TWO PARTIES: Quote USD = JPY 90.00 – 90.30 Quoting Party – Bank Calling Party – Customer Buys USD Sells USD @ JPY 90.00 @ JPY 90.00 per USD per USD Sells USD Buys USD @ JPY 90.30 @ JPY 90.30 per USD per USD Forward FX Conversion Bank of Commerce will buy or sell one currency in terms of another currency for delivery on an agreed date in the future specifically beyond the spot date. FORWARD EXCHANGE RATE = SPOT RATE + SWAP POINTS SPOT RATE: Agreement to buy or sell one currency vs. another for delivery within 2 banking days. Transactions can also be for value tomorrow or value today SWAP POINTS: Interest rate differential of the currencies involved expressed in terms of points in exchange rate. Example of Swap Point Computation Compute for the 30-day Forward Rate of USD/PHP given the following: Spot Rate=47.00 PHP Interest Rate = 4.00 USD Interest Rate = 1.00 47.00 x [(4.0-1.0)x30/360] = 0.1175 When Swap Points Are Positive: Positive Swap Points are said to be in a PREMIUM. The Forward Exchange Rate is higher than the spot rate Standard Amount USD 1.0 mio Term/Tenor 1 day to 1 year Tax Feature – Same as the PDS – From 9:00 a.m. -12:00 noon and from 2:30 p.m. to 4:00 pm (GMT + 8:00 MNL) Interest Computation Quoted two-way up to three decimal points. Manner of Purchase – Forward Contract Line – Foreign Exchange Settlement Line – *Supporting Documents (underlying obligation) Documentation Forward Contracts BEST FOR Importers. Those who will buy USD in the future and are anticipating that USDPHP rate will go up Exporters. Those who are expecting USD inflows in the future and are expecting that USDPHP rate will go down Long-Term Negotiable Certificates of Time Deposit (LTNCDs) Please be advised that the Bank of Commerce LTNCDs Offer Period and Issuance Date will be moved to the following dates: OFFER PERIOD: FROM Jan. 27 – Feb. 7, 2020 TO Week of Mar. 2, 2020 ISSUANCE DATE: FROM Feb. 14, 2020 TO Week of Mar. 16, 2020 For more information, please call your branch of account or the Selling Agents: Bank of Commerce (02) 8982-6000 local 6043, 6044, 6045 Standard Chartered (02) 8886-7888