STATE-OWNED Land Bank of the Philippines has raised P6 billion worth of Long-Term Negotiable Certificate of Deposits (LTNCD), the first tranche from a P15-billion program approved by the central bank.
The offer, which is the second issuance this year, attracted a strong demand of over P7 billion, the bank said on Friday.
However, LandBank said it decided to award only P6 billion in line with its expansion plans and lending activities.
The final size is twice the initial P3 billion announced at the start of the offer period.
The strong demand helped the bank price at the lowest end of its pricing guidance or at 3.75 percent a year. To be issued on October 9, the LTCND has a maturity of five and a half years.
“We thank the investor community for partnering with us in nation-building. The proceeds of the issuance will make long-term funding available for the Bank’s development programs and lending activities for our mandated and priority sectors,” said LandBank President and CEO Gilda Pico.
As of June 30, 2015, the bank generated a net income of P7.2 billion, up 19 percent from P6.04 billion a year earlier.
With a nationwide network of 356 branches and 1,454 automated teller machines, LandBank is present in all of the country’s 81 provinces.