UnionBank of the Philippines raised P3 billion from its long-term negotiable certificates of deposit (LTNCD) to improve its deposit maturity profile and help expand its business.

The Aboitiz-led UnionBank launched the offering of new LTNCD on Wednesday at the Philippine Dealing and Exchange Corp.

The notes will mature in 5.5 years and carry an interest rate of 4.375% to be paid quarterly until August 21, 2023. The issuance is the first tranche of UnionBank’s P20-billion LTNCD offering approved by the central bank.

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.” — Karl Angelo N. Vidal

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