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

Jul 262013
EastWest Bank to issue another P5-B LTNCDs

MANILA, Philippines – EastWest Banking Corp. will issue another P5 billion worth of long term negotiable certificates of time deposits (LTNCDs), the bank disclosed to the Philippine Stock Exchange yesterday. EastWest Bank said it is now in the process of seeking regulatory approval for the LTNCD issuance. The Gotianun-led bank issued last November P5 billion worth of LTNCD and is expected to complete the offering next month. As this developed, Philippine National Bank (PNB), the financial arm of the Lucio Tan Group, said it had completed the public offering of its P5 billion LTNCDs in record time. PNB was able to raise its intended volume in the morning of July 25, the same day it announced the start of the offer period, making it one of the fastest offerings in the Philippine capital market.  With an oversubscribed book early in its offering, the 5.5-year deposit was priced at three percent, the lowest ever coupon for an LTNCD instrument.  Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The public offer period was supposed to run for three days, from July 25-29, but was closed the same morning as its launch due to strong demand.  “We are overwhelmed by the confidence and support of our investors in PNB.  This fundraising exercise will allow us to support our asset growth, and make us even more competitive in the banking industry.”  PNB president and CEO Omar Mier, said in a statement. For his part, HSBC Philippines president and CEO Wick Veloso said: “Raising Read More …