Metropolitan Banking & Trust Co. (Metrobank) is planning to raise up to P20 billion by selling long-term negotiable certificates of deposit (LTNCD).
In a disclosure to the stock exchange on Thursday, April 26, the Ty-led lender said it is set to issue peso-denominated LTNCDs of up to P25 billion as approved by its board of directors.
The capital raising activity will be done in one or more tranches of at least P2 billion per tranche with tenors of 5.5 years up to 10 years.
The offering is subject to regulatory approval and market conditions. The issued long-term papers will be listed on the Philippine Dealing & Exchange Corp.
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