Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, received the nod of the Bangko Sentral ng Pilipinas to issue up to P25 billion worth of long-term negotiable certificates of time deposits to support its business expansion plans.
The bank said in a disclosure to the stock exchange Monday it obtained the central bank approval on July 23.
“On July 23, the bank received BSP’s approval to issue up to P25 Billion LTNCD in one or more tranches of at least P2 billion per tranche, and tenors of 5.5 years up to 10 years. The purpose of the issuance is to diversify the maturity profile of funding sources and support business expansion plans,” the bank said.
It said the timing of the first tranche of LTNCDs would be subject to market conditions. Metrobank said it would list the notes eventually with Philippine Dealing and Exchange Corp.
LTNCDs are bank products with long tenors which are offered to investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits.