PBCom to offer LTNCDs
PHILIPPINE Bank of Communications (PBCom) is set to raise up to P5 billion by selling pesodenominated long-term negotiable certificates of time deposit (LTNCD).
In a disclosure to the local bourse on Thursday, the listed lender said its executive committee approved the filing of the application for issuance of up to P5 billion in LTNCDs in one or more tranches.
The planned offering still requires approval from the Bangko Sentral ng Pilipinas.
“The purpose of the issuance is for general corporate funding, especially long- term funding,” PBCom said in the filing.
LTNCDs are similar to regular time deposits which offer higher interest rates.
However these cannot be preterminated. Being “negotiable” means these can be sold at the secondary market prior to maturity date.
Other banks such as Philippine Savings Bank, Metropolitan Bank & Trust Co. and China Banking Corp. have announced plans to issue long-term notes this year.
Meanwhile, BDO Unibank, Inc., Security Bank Corp. and UnionBank of the Philippines have recently conducted LTNCD offerings, raising P8.2 billion, P5.8 billion and P3 billion, respectively.
PBCom saw its consolidated net profit jump 32.4% in the first quarter to P176.88 million from the P133.63 million logged in the same period last year.
According to the latest central bank data, PBCom was the 20th biggest commercial bank in the country in asset terms as of end2017. •