Oct 192013
 

MANILA, Philippines – Union Bank of the Philippines has raised P3 billion through the issuance of long-term negotiable certificates of time deposits (LTNCDs), a company disclosure to the Philippine Stock Exchange said.

The LTNCDs carry a coupon rate of 3.5 percent per annum, payable quarterly beginning January 2014.

The maturity date of the long-term deposits is on April 17, 2019.

HSBC was the sole lead arranger and selling agent for the offering while the selling agents included Multinational Investment Bancorporation and UBP.

The net proceeds of the issuance will be used to improve the bank’s deposit maturity profile and support business expansion plans.

“UBP continues to show commitment to its customers by providing wider choices of investment assets such as these LTNCDs, which offer higher yields as compared to other types of instruments due to lesser intermediation costs, while lengthening the bank’s maturity profile,” said UBP president and chief executive officer Victor B. Valdepenas.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

LTNCDs are negotiable certificates of time deposits and are tax exempt for qualified individuals if held for at least five years.

The Philippine Deposit Insurance Corp. (PDIC) insures up to a maximum coverage per depositor, currently at P500,000.

These are bank products with long tenors, from five to 10 years, are offered to investors looking for a higher interest rates compared to regular savings accounts or shorter-term deposits.

The Aboitiz-led bank earlier said it is confident it will post income growth of more than 10 percent this year.

Valdepenas said the sustained positive performance of the bank is anchored on the growth of the country as a whole.

The bank official said growth would also be boosted by consumer banking activities, primarily housing and auto loans.

In 2012, UBP registered a 15-percent increase in net earnings to P7.58 billion from P6.59 billion in 2011. – Donnabelle Gatdula, Ted Torres

 Leave a Reply

(required)

(required)