AUB issues P2-B deposit notes

0

Asia United Bank (AUB), which listed at the local bourse recently, has started the issuance of the first tranche of its up to P2-billion long-term negotiable certificates of time deposits (LTNCDs).

Advertisements

The issuance, according to AUB, will help boost its lending activity as it aggressively expands its network nationwide, which currently stands at 142 branches.

For the issuance, AUB tapped HSBC as the sole arranger, bookrunner and selling agent, while the selling agents are AUB, First Metro Investments Corp. (FMIC) and Multinational Investment Bancorporation (MIB).

LTNCDs are negotiable certificates of time deposits with a designated maturity or tenor representing a bank’s obligation to pay the face value upon maturity, as well as make periodic coupon or interest payments during the life of the deposit. LTNCDs are also insured by the Philippine Deposit Insurance Corp. for up to P500,000 and are tax exempt for qualified individuals if held for at least five years.

In its previous disclosure, the listed bank said it has secured Monetary Board approval to pursue its plan to issue up to P5-billion worth of LTNCDs.

It was also reported earlier that AUB’s rural bank subsidiary is set to acquire the banking business of the Cooperative Bank of Pampanga (CBP) under a purchase and assumption, where AUB will absorb more than P300-million worth of liabilities of the Pampanga-based bank.

Specifically, the Rural Bank of Angeles, AUB’s rural bank subsidiary will purchase all the assets, including the seven existing banking units, of CBP, as well as its liabilities.

As of August this year, CBP had total assets of P152.6 million, total liabilities of P342.7 million, and net capital deficit of P190.1 million.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.