GEORGE TY-OWNED Metropolitan Bank and Trust Co. (Metrobank) on Tuesday started offering the second tranche of its planned P20-billion long term negotiable certificates of deposits (LTNCDs).
In a statement, Metrobank said the seven-year LTNCDs will be offered from November 4 to November 14, but the bank reserves the right to adjust the offer period. The LTNCDs will be listed on the Philippine Dealing and Exchange Corp.
The LTNCDs, which will mature on November 21, 2021, are being offered at a rate of 4.25 percent per annum, payable quarterly. Minimum investment is P50,000, with increments of P50,000 thereafter.
Metrobank investor relations head Juan Placido Mapa III said that the second tranche of LTNCDs was offered on strong demand for the first tranche of five-and-a-half year LTNCDs.
The first tranche, which was offered from October 7 to 17 and issued on October 24, raised P8 billion for the bank. The P8-billion LTNCDs, to mature in April 2020, bear an interest rate of 4 percent annually. Like the second tranche, minimum investment for the first tranche was P50,000, with increments of P50,000 thereafter.
Joint lead arrangers and selling agents for this offer are The Hongkong and Shanghai Banking Corp. Ltd. and ING Bank N.V., Manila Branch, while Metrobank, First Metro Investment Corp. and Multinational Investment Bancorp. will serve as selling agents.
Selling LTNCDs is a way for banks to raise funds, usually in huge amounts. The bank doing the fundraising is obliged to pay the face value of the certificate upon maturity, and produce periodic coupons or interest payments during the life of the deposit.
LTNCDs are tax-exempt for qualified individuals or institutions who hold them for at least five years. The notes are insured by the Philippine Deposit Insurance Corp. for up to P500,000.
Metrobank is the banking arm of businessman George Ty through conglomerate GT Capital Holdings Inc.
Aside from banking, GT Capital has interests in the automotive sector (Toyota Motor Philippines), real estate (Federal Land Inc.), power (Global Business Power Corp.), insurance (Philippine AXA Life Insurance Corp.), and non-life insurance (Charter Ping An Insurance Corp.).