China Banking Corp., the seventh-largest lender in terms of assets, successfully raised P10.25 billion through a public offering of peso-denominated long-term negotiable certificates of time deposits.
The bank said Thursday the offering was the first tranche of its planned P20-billion LTNCDs earlier approved by regulators. The bank increased the offer from the initial size of P5 billion to P10.25 billion following an oversubscription, with an interest rate of 4.55 percent per annum.
This is the largest LTNCD issuance in the banking industry so far this year and the biggest tranche of LTNCD done in China Bank’s history.
The bank plans to use proceeds from the fund-raising activity to support strategic initiatives and expansion programs.
China Bank chief operating officer Romeo Uyan Jr. led the ringing of the bell on Thursday to herald the listing and the start of trading of China Bank LTNCD due 2024 on the Philippine Dealing and Exchange Corp. platform.
“This LTNCD issuance will make long-term funding available for our lending activities and development plans. We thank our depositors and clients for their strong support, which is a clear recognition of China Bank’s bright prospects ahead,” Uyan said.
It was the China Bank’s third LTNCD listing on PDEx, following the P6.34-billion LTNCD issue in 2017 and the P9.59-billion LTNCD issue in 2016.
The Hongkong and Shanghai Banking Corp. Ltd. was the sole arranger and acted as selling agent, along with China Bank and China Bank Capital Corp.
China Bank is one of the largest private universal banks in the Philippines providing a full range of banking products and services to corporate, commercial, and retail customers through 604 branches to date, including the 160 branches of its retail bank arm China Bank Savings.
It offers a wide range of allied financial services through its subsidiaries China Bank Capital Corp., China Bank Securities Corp., China Bank Insurance Brokers Inc., and affiliate Manulife China Bank Life Assurance Corp.
China Bank posted a consolidated net income of P1.50 billion in the first quarter of 2018, up 2 percent year-on-year, on the back of the sustained growth in core businesses.