RCBC starts LTNCD offer

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) is offering P2 billion worth of fixed rate coupon bearing long-term negotiable certificates of deposit (LTNCDs) with an indicative interest rate of four to 4.125 percent.

The LTNCDs have a maturity period of five years and six months. The offer period is from Dec. 3 to Dec. 12, “subject to early closure or extension as the case may be.” Tentative issue date is on Dec. 19.

The initial minimum denomination is P50,000, with minimum increments of P10,000 thereafter.

Hongkong and Shanghai Banking Corp. (HSBC) is the sole arranger while selling agents include Multinational investment Bancorporation (MIB), RCBC Savings Bank, HSBC and RCBC. MIB is also the market maker.

“The notes were issued to manage duration of our liabilities,” RCBC president and chief executive officer Lorenzo V. Tan said.

RCBC has tapped capital markets to raise funds to fulfill requirements of Basel III and Bangko Sentral ng Pilipinas (BSP), and fuel up for expansion plans. Asset growth is also part of the capital expenditures from funds raised from the unsecured notes issue.

More recently, the bank sold P3 billion worth of unsecured subordinated notes eligible for Tier 2 capital with an interest rate of 5.375 percent. It completed a P10-billion capital-raising target for the year.

In the first semester, RCBC introduced two -, three-, four- and five-year US dollar time deposits (TDs) with interest rates ranging from a low of 1.75 percent to 2.5 percent. It has been offering 90-day, 180-day, and 360-day dollar-denominated TDs.