PBCom gets BSP nod for P5-billion LTNCDs
THE PHILIPPINE Bank of Communications (PBCom) received central bank approval to issue P5 billion worth of long-term negotiable certificates of deposit (LTNCD) to strengthen its long-term funding.
In a disclosure to the local bourse on Tuesday, the Co-led lender said the Bangko Sentral ng Pilipinas has okayed its plan to issue peso-denominated LTNCDs of up to P5 billion as approved by its executive committee earlier this year.
The capital raising activity will be done in one or more tranches in a year with tenors of at least five years and a day up to seven years, the bank said.
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.”
“The purpose of the issuance is for general corporate funding, especially long-term funding,” PBCom said in the previous regulatory filing.
UnionBank of the Philippines, Inc., BDO Unibank, Inc., Security Bank Corp., East West Banking Corp., China Banking Corp. and Robinsons Bank Corp. have already offered LTNCDs this year to diversify their funding sources or finance business expansion.
PBCom saw its consolidated net profit jump 32.4% in the first quarter to P176.88 million from the P133.63 million logged in the same period last year.
PBCom is currently licensed as a commercial lender and is the 20th biggest in the industry with P98.37 billion assets at end-March, central bank data showed. — K.A.N. Vidal
