ROBINSONS BANK Corp. raised P1.78 billion from the first tranche of its P5-billion long-term negotiable certificates of deposit (LTNCD) program, which it wants to use to support its loan growth.
At the ceremonial listing of the investment instruments on Monday at the Philippine Dealing System in Makati City, the Gokongwei-led lender said it raised P1.781 billion from the peso-denominated issue.
The notes will mature in 5.5 years and carry an interest rate of 4.875% to be paid quarterly until Jan. 16, 2024.
The issuance is the first tranche of Robinsons Bank’s P5-billion LTNCD program approved by the central bank.
“Our application is to issue a total of P5 billion which can be done in one to two tranches,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte told BusinessWorld in a previous interview.
“That flexibility allows us that if we don’t reach the [amount] that we are happy, we can offer [another tranche] within a year to complete the P5 billion.”
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.”
Mr. Sarte said last month the proceeds of the fund-raising activity will be used to support the lender’s loan growth this year.
“As we project, our guidance will increase by about 30% in terms of assets. A lot of the asset growth will be coming from additional loans both in the commercial and consumer areas. That is really the reason why,” Mr. Sarte said.
“We’re ensuring that our leverage or liquidity coverage ratio will continue to be healthy so that we can continue to grow both lending out long with the LTNCD and the capital diffusion. That will strengthen our liquidity and funding sources.”
ING Bank N.V. (Manila branch) served as the sole arranger and bookrunner for the fund-raising activity. It joined Robinsons Bank as a selling agent.
Aside from this, the lender’s parent companies, JG Summit Holdings, Inc. and Robinsons Retail Holdings, Inc. is set to infuse P3 billion in fresh capital into the bank this month.
Robinsons Bank’s listing brings the total volume of outstanding listed securities to P893.01 billion, floated by 47 companies.
In June 2017, Robinsons Bank raised P4.182 billion from its first-ever LTNCDs, more than the initial P3 billion offer size, on the back of strong demand.
Apart from Robinsons Bank, UnionBank of the Philippines, Inc., BDO Unibank, Inc., Security Bank Corp., East West Banking Corp. and China Banking Corp. have also issued LTNCDs this year. — Karl Angelo N. Vidal

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