Robinsons Bank plans P5-B LTNCD issuance

The Bangko Sentral ng Pilipinas (BSP) has approved the planned P5 billion fund raising activity of Gokongwei-led Robinsons Bank Corp. via the issuance of long-term negotiable certificates of deposits (LTNCDs) in the first half.

In a disclosure, Robinsons Bank senior vice president and corporate secretary Roel Costuna said the planned LTNCD issuance was approved by the BSP’s Monetary Board last May 31.

The LTNCDs with a tenor of five years and six months would be issued in on or two tranches within a period of one year. The bank has tapped ING Bank NV as selling agent together with Robinsons Bank.

LTNCDs offer higher interest rates but could not be preterminated like regular time deposits.

Costuna said proceeds from the fund raising activity would support the bank’s business expansion plans and diversify the maturity profile of funding sources.

The debut of Robinsons Bank at the PDEx platform in June last year was met with strong demand, prompting the bank to upsize the P3 billion LTNCD offering to P4.18 billion.

The combined level of outstanding securities of the Gokongwei’s flagship JG Summit Group listed on the PDEx platform currently stands at P46.2 billion.

Aside from Robinsons Bank’s P4.18 billion worth of LTNCDs, JG Summit also raised P30 billion from the issuance of fixed rate bonds due 2019, 2021, and 2024 last February 2014 while Robinsons Land Corp. raised P12 billion from the issuance of fixed rate bonds due 2022 and 2024 last February 2015.

Robinsons Bank of taipan John Gokongwei is the country’s 19th largest commercial bank in terms of assets with P103.1 billion as of the end of 2017.

It has 134 branches while its subsidiary Legazpi Savings Bank has 12 branches.