BPI raising P30 B from LTNCD issue
“The LTNCTD will be issued in one or more tranches with the first tranche targeted to be issued within the year, subject to prevailing market conditions,” BPI said in the disclosure. File
MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is raising P30 billion from the issuance of long-term negotiable certificates of time deposits (LTNCDs) to support the bank’s expansion plans and at the same time diversify its funding sources.
The country’s third largest bank yesterday informed the Philippine Stock Exchange (PSE) it has received the green light from the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) for the fund raising activity.
“The LTNCTD will be issued in one or more tranches with the first tranche targeted to be issued within the year, subject to prevailing market conditions,” BPI said in the disclosure.
LTNCDs are negotiable certificates of deposit with a designated maturity and represent a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit. Interest income is exempt from withholding taxes if the LTNCDs are held for at least five years.
Big banks have so far raised P45.72 billion from the issuance of LTNCDs that were listed at the Philippine Dealing and Exchange Corp. (PDEX).
BDO Unibank Inc. raised a record P11.8 billion through the issuance of LTNCD last August bringing the total listed amount of the SM Group on the Philippine Dealing Exchange (PDEx) at P155.24 billion.
On the other hand, Gotianun-led East West Banking Corp. raised P10 billion from five tranches of LTNCD issuances.
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