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China Bank raises P10.25 billion from LTNCD issuance

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China Bank
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China Banking Corp. (China Bank) raised P10.25 billion from its long-term negotiable certificates of deposit (LTNCD), which it wants to use to stabilize its cost of funding and help expand its business.

At the ceremonial listing of the investment instruments on Thursday, July 12, at the Philippine Dealing System (PDS) in Makati City, the Sy-led lender said it raised P10.25 billion from the peso-denominated issue.

The notes will mature in 5.5 years and carry an interest rate of 4.55% to be paid quarterly until January 12, 2024.

The LTNCD issuance, the largest in the banking industry in 2018 to date, was twice oversubscribed, prompting China Bank to upsize the offer to P10.25 billion from the initial size of P5 billion.

The issuance is the first tranche of China Bank’s P20-billion LTNCD program approved by the central bank. — Karl Angelo N. Vidal