Security Bank begins P5-B LTNCD offer

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Security Bank

SECURITY BANK Corp. on Tuesday said it started to offer at least P5 billion in long-term negotiable certificates of deposit (LTNCD), part of a bigger fund-raising program.

In a disclosure to the stock exchange, Security Bank said it is offering P5 billion in LTNCDs from April 10 to 20, with an oversubscription option.

“The bank will be tapping into the unissued portion of the P20 billion LTNCDs… The second tranche of LTNCDs is intended to be issued on May 2, 2018,” it said.

LTNCDs are similar to regular time deposits which offer higher interest rates, but the difference is that these cannot be pre-terminated. Being “negotiable” means that these can be traded at the secondary market prior to maturity date.

In November 2017, Security Bank issued the first tranche, which covered P8.6 billion worth of LTNCDs.

Aside from Security Bank, other lenders such as China Banking Corp., UnionBank of the Philippines and East West Banking Corp. have also announced plans to offer LTNCDs. — K.A.N. Vidal