After receiving the approval of Bangko Sentral ng Pilipinas (BSP), listed East West Banking Corp. has started to issue P5-billion worth of high-yield deposits on Monday.
In a disclosure to the Philippine Stock Exchage, EastWest said that after receiving authorization from the BSP to issue P5 billion of long-term negotiable certificates of deposit (LTNCD), it has now began its tranche offering of its LTNCD, which will mature on June 5, 2019.
LTNCDs are time deposits that have longer maturity and carry higher yields. Deposit insurance coverage with the Philippine Depository Insurance Corp. for the LTNCD structure is up to a maximum of P500,000 each depositor.
“This offering will be made available to its valued clients in a program of weekly tranches over the next six months. The offering may end earlier should the approved P5 billion face value be exhausted earlier. EW [EastWest] reserves the right to modify the schedules as needed,” EastWest told the local bourse.
The bank also specified that the initial LTNCD offering is slated to carry yields in the range of 3.125 percent to 3.375 percent per annum, depending on market conditions and demand for the instrument.
“EW expects to disclose the total volume raised at the end of the program,” the bank added.
On November 8, EastWest announced that it got the approval of BSP for the said issuance.
EastWest also issued last year the same amount of LTNCDs, which is due in 2018. The bank said that the previous LTNCD issuance have quarterly interest payments and has tenor of five years and seven months, while the principal payment date is on May 23, 2018.
The selling agents for the issuance are Unicapital Inc. and EastWest itself. Unicapital also serves as the lead arranger for the transaction.