PHILIPPINE BUSINESS Bank (PBB) is set to conduct capital-raising activities to capitalize on lending opportunities.
In a disclosure to the Philippine Stock Exchange on Thursday, the Yao-led PBB said it will convert its existing preferred shares to common stocks “to further strengthen its balance sheet.”
The bank’s planned conversion of preferred shares to common shares is still subject to regulatory approvals, it said.
The lender added that it is also looking at raising up to P10 billion through the offer of 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.
Earlier this year, Philippine National Bank and East West Banking Corp. said they will sell LTNCDs worth P20 billion and P15 billion, respectively.
Meanwhile, UnionBank last month offered some P3 billion in certificates, the first tranche of its P20-billion LTNCD program.
PBB posted lower earnings in the third quarter of 2017 due to a decline in trading gains and higher expenses. It booked a net profit of P125.78 million, down from the P329.96 million it earned in 2016.
Shares in PBB fell by 0.3% or four centavos to P13.20 apiece on Thursday. — KANV
