Philippine Bank of Communications (PBCom) received the central bank approval to issue P5 billion worth of long-term negotiable certificates of deposit (LTNCD) to strengthen its long-term funding.
In a disclosure to the local bourse Tuesday, July 31, the listed lender said the Bangko Sentral ng Pilipinas has authorized its plan to issue peso-denominated LTNCDs of up to P5 billion as approved by its executive committee in May.
The capital raising activity will be done in one or more tranches in a year with tenors of at least five years and a day up to seven years.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
“The purpose of the issuance is for general corporate funding, especially long-term funding,” PBCom said in the previous regulatory filing. — Karl Angelo N. Vidal

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