PSBank to offer LTNCDs
PHILIPPINE Savings Bank (PSBank) plans to raise up to P15 billion by selling peso-denominated long-term negotiable certificates of time deposit (LTNCD).
In a disclosure to the Philippine Stock Exchange Tuesday, the listed thrift banking arm of Ty-led Metropolitan Bank & Trust Co. said its board of directors approved the issuance of up to P15 billion in LTNCDs in two or more tranches.
The program will be conducted over a year and will carry a tenor of five-and-a-half years.
The offering still requires approval from the Bangko Sentral ng Pilipinas.
Its final terms, including the offer period as well as the interest rate, will depend on market conditions, the bank said on Tuesday.
“The issuance of LTNCTDs will give PSBank an opportunity to access long- term funding as the bank further expands its consumer banking business,” PSBank said in the disclosure.
LTNCDs are similar to regular time deposits which offer higher interest rates. However these cannot be pre- terminated. Being “negotiable” means these can be sold at the secondary market prior to maturity date.
In September 2016, PSBank announced a P10-billion LTNCD issuance program with a five-year tenor. The first tranche, which raised P3 billion, was offered in January last year.
PSBank, the second- largest thrift bank in the country in asset terms as of end- 2017, booked a net income of P641.1 million in the first quarter, supported by strong revenues. •