Gokongwei-led Robinsons Bank has returned to the local debt market with an offering of as much as P5 billion worth of high-yielding deposits, proceeds from which will fund the bank’s aspiration to becoming one of the country’s leading banks.
The long-term negotiable certificates of deposit (LTNCD) will have a tenor of 5.5 years and carry an interest rate of 4.875 percent per annum, payable on a quarterly basis. The LTNCDs are offered to the public at a minimum denomination of P50,000 and multiples of P10,000 thereafter.
ING Bank NV acts as the sole lead arranger for this offering, which started Thursday and will run until July 9. The target settlement and listing date on the Philippine Dealing and Exchange Corp. is on July 16.
LTNCDs are negotiable certificates of time deposits and are tax-exempt for qualified individuals if held for at least five years. They are insured by the Philippine Deposit Insurance Corp. up to a maximum coverage, currently at P500,000, per depositor.
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These bank products target investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits.
In an investors briefing yesterday, Robinsons Bank president Elfren Antonio Sarte said this LTNCD offering would complement the bank’s upcoming capital buildup program. With a growth projection of 30 percent annually, Sarte said it was raising funds to expand its loan book, including its credit card portfolio.
