Robinsons Bank raises P1.8 billion via LTNCD issue

MANILA, Philippines — Gokongwei-led Robinsons Bank Corp. has raised P1.78 billion from the issuance of long-term negotiable certificates of deposits (LTNCDs) to support its expansion plans and diversify the maturity profile of its funding sources.

The LTNCDs due 2024 with an interest rate of 4.875 percent per annum were listed on the platform of the Philippine Dealing and Exchange Corp. (PDEx) yesterday.

The amount raised represents the first tranche of its planned P5 billion LTNCD offering.

The second tranche for the balance of about P3.2 billion may be undertaken next year as higher interest rates as well as competition from other companies raising funds affected the fund raising activity.

LTNCDs offer higher interest rates but could not be pre-terminated like regular time deposits.

ING Bank NV Manila served as arranger, while Robinsons Bank was the selling agent.

This was the smallest LTNCD issued by banks so far this year after China Banking Corp. with P10.25 billion, BDO Unibank with P8.2 billion, Security Bank with P5.78 billion, Union Bank of the Philippines with P3 billion and East West Bank with P2.45 billion.

The debut of Robinsons Bank at the PDEx platform in June last year was met with strong demand, prompting the bank to upsize the P3 billion LTNCD offering to P4.18 billion.

Robinsons Bank is the country’s 19th largest commercial bank in terms of assets with P102.83 billion as of end-March. It has 134 branches, while its subsidiary Legazpi Savings Bank acquired in 2012 has 12 branches.