PBB to raise up to P10 billion from LTNCD issuance

Philippine Business Bank (PBB) is set to conduct capital raising activities to capitalize on attractive lending opportunities.

In a disclosure to the Philippine Stock Exchange on Thursday, Feb. 15, the Yao-led PBB said it will convert existing preferred shares to common stocks “to further strengthen its balance sheet.”

The conversion of preferred shares to common stock is still subject to regulatory approvals.

Meanwhile, the lender added that it will also look at raising up to P10 billion by selling long-term negotiable certificates of deposit (LTNCD).

“The additional funding will allow the Bank to capitalize on attractive lending opportunities as the Philippine economy continues to expand,” PBB said in the disclosure.

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. — Karl Angelo N. Vidal