Union Bank board approves P70-B fundraising program

ABOITIZ- led Union Bank of the Philippines plans to raise as much as P70 billion in the next few years from the issuance of longterm negotiable certificates of deposit ( LTNCDs) and a euro medium- term note ( MTN) program.

Union Bank said on Monday its Board of Directors approved the issuance of LTNCDs up to an aggregate amount of P20 billion, subject to the approval of the Bangko Sentral ng Pilipinas.

LTNCDs are time deposits that have a longer maturity and are higher yielding than regular deposits. These instruments are negotiable and are insured with the Philippine Deposit Insurance Corp. up to the maximum coverage, which is currently at P500,000 per depositor.

Union Bank said its board also approved the issuance of euro MTNs worth up to $ 1 billion ( P50 billion).

A euro MTN is a flexible debt instrument that is traded and issued outside of the United States and Canada. Such instruments, having maturities of less than five years, require fixed payments and are directly issued to the market.

Union Bank is the banking arm of the Aboitiz family under their holding firm Aboitiz Equity Ventures Inc., which also has interests in power distribution, power generation and retail electricity supply ( Aboitiz Power Corp.); food manufacturing ( Pilmico Foods Corp.); and real estate ( Aboitiz Land Inc.).