CHINA Banking Corp. is planning to raise up to P50 billion from the issuance of high-yielding time deposits, bonds and commercial papers to support its expansion.
In a disclosure, the bank said its Board of Directors approved the lender’s peso funding program of up to P50 billion via a combination of long-term negotiable certificates of time deposit (LTNCDs) and/or retail bonds and/or commercial papers.
“This program will be used to fund the bank’s strategic initiatives and expansion, specifically in relation to the expected growth in the lending business,” it said.
China Bank said this is in line with its intention to be an active participant in the ongoing economic expansion of the country and the government’s infrastructure initiatives.
The bank earlier said its earnings for full-year 2017 jumped 15 percent, buoyed by the robust performance of its core and fee-based businesses.
Selling instruments like LTNCDs is a way for banks to raise capital without having to sell shares.
The bank is obliged to redeem the face value of the certificate upon maturity and pay out periodic coupons or interest payments during the life of the deposit.
In June last year, China Bank said it raised P6.34 billion from the issuance of LTNCDs due 2022.