China Bank raises P10.25 B via LTNCD

China Banking Corp. has raised P10.25 billion after investors swarmed its long-term negotiable certificates of time deposits (LTNCDs) offering.

The fund raising activity was two times oversubscribed, prompting the bank to upsize the fund raising activity from an initial size of P5 billion.

The amount accounted for more than half of the planned P20 billion LTNCD offering. The bank’s debt instrument due 2024 fetched an interest rate of 4.55 percent per annum.

This is the largest LTNCD issuance in the banking industry so far in 2018. Banks that have issued LTNCDs so far this year include Sy-led BDO Unibank with P8.2 billion, Security Bank with P5.78 billion, Aboitiz-owned Union Bank of the Philippines with P3 billion, and Gotianun-led EastWest Bank with P2.45 billion.

China Bank chief operating officer Romeo Uyan said proceeds of the fund raising activity would support the bank’s strategic initiatives and expansion programs.