LISTED commercial bank China Banking Corp. said over the weekend it raised P6.34 billion from the issuance of its second tranche of long-term negotiable certificates of time deposit (LTNCTD) due 2022, which will be used to support its strategic initiatives and business expansion.
China Bank issued its first tranche of LTNCTDs last November 2016 amounting to P9.58 billion. The second tranche puts the company’s total outstanding amount of listed issues at P15.93 billion.
LTNCTDs are time deposits that have longer maturity and higher yields than regular deposits. These instruments are negotiable and insured with the Philippine Deposit Insurance Corp. (PDIC) with a maximum coverage of P500,000 per depositor.
The issuance is expected to boost China Bank’s long-term deposit base and long-term asset growth, according to the company.
China Bank President and Chief Executive Officer Ricardo Chua and Chairman Hans Sy attended the listing ceremony of the notes at the Philippine Dealing and Exchange Corp. (PDEx) last week.
The company tapped Australia and New Zealand Banking Group Ltd. (ANZ), The Hong Kong and Shanghai Banking Corp. Ltd. (HSBC), and Standard Chartered Bank as its joint lead arranger, joint bookrunner and selling agents for the transaction.
China Bank is part of the SM Group, whose other affiliates — SM Investments Corporation, BDO Unibank, Inc., and SM Prime Holdings, Inc. — are also PDEx listed issuers.
With the company’s second listing, the total outstanding listed issues of the SM Group now amount to P140.7 billion, accounting for 20 percent of the overall outstanding listed securities on PDEx.
This 13th listing for the year brought the total year-to-date volume of new listings past the P100 billion mark, or to P101.98 billion.
The total level of tradable corporate debt instruments, meanwhile, increased to P708.64 billion issued by 43 companies, comprised of 121 securities.
For the first quarter of 2017, China Bank’s net income grew 6 percent to P1.47 billion from last year’s P1.37 billion on the back of strong growth in lending and core fee-based income.