Sy family-led China Banking Corp. (Chinabank) has raised P10.25 billion in fresh funds from an offering of high-yielding deposit notes, boosting its capability to support big-ticket projects such as in the infrastructure and energy sectors.
The amount was raised from the issuance of long-term negotiable certificates of deposit (LTNCDs) due in 2024. These were priced at 4.55 percent per annum and marked the largest LTNCD issuance in the banking industry so far this year.
The offering was oversubscribed by two times the base offer, allowing Chinabank to jack up the offering from the initial size of P5 billion in a deal solely arranged by British banking giant HSBC.
The LTNCDs, the first tranche of Chinabank’s planned P20-billion LTNCD program, were listed on the Philippine Dealing & Exchange Corp. (PDEx) on Thursday.
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LTNCDs are negotiable certificates of time deposits and are tax exempt for qualified individuals if held for at least five years. The LTNCDs are insured by the Philippine Deposit Insurance Corp. for up to a maximum coverage of P500,000 per depositor.
Chinabank treasurer Benedict Lee Chan told reporters that this year, the bank’s loan book would likely expand by 15 to 18 percent.
