UNION Bank of the Philippines of the Aboitiz Group, the 10th-largest lender in terms of assets, said Wednesday it started the offering period for P3 billion worth of long-term negotiable certificates of time deposits.
The bank said in a statement the launch followed the approval by the Bangko Sentral ng Pilipinas for the issuance of up to ₱20 billion worth of LTNCDs in tenors of 5.5 to 10 years in multiple tranches over a period of one year.
“The bank’s initial offering of at least ₱3.0 billion, with an oversubscription option, will have a tenor of 5 years and 6 months with an indicative rate of 4.125 to 4.375 percent per annum,” it said.
The final rate for the LTNCDs will be determined prior to the end of the public offer period, which will run from Jan. 30, 2018 to Feb. 9, 2018. Interest payments will be made quarterly.
Minimum investment in the LTNCDs has been set at ₱50,000 and increments of ₱10,000 thereafter. The issue date is set on Feb. 19, 2018.
“Union Bank is offering the LTNCDs to improve its deposit maturity profile and support business expansion plans,” the bank said.
It tapped Standard Chartered Bank as the sole lead arranger and bookrunner for the issuance. Standard will also act as selling agent, along with UnionBank and Multinational Investment Bancorporation for the offering.
The LTNCDs will be listed on Philippine Dealing Exchange Corp.
Union Bank in the first nine months of 2017 registered a net income of P6.39 billion, down 21 percent from P8.14 billion a year ago on lower trading gains.
Excluding securities trading gains, the bank said earnings would have gone up by 42.5 percent to P6.39 billion from P4.3 billion last year.