The Metropolitan Bank & Trust Co. (Metrobank) is set to issue long-term negotiable certificates of deposits (LTNCDs) to raise P20 billion, having secured its board’s approval for the plan, the bank said in a stock exchange
filing on Thursday.
It said its board of directors finally approved on Wednesday the issue proposed in October last year.
“The timing and launch of the LTNCD program will be determined following the receipt of regulatory approvals and will be subject to market conditions prevailing at such time,” Metrobank said.
Used as a means to raise funds usually in huge amounts, the sale of LTNCDs obliges the bank to pay the face value of the certificate upon maturity, and produce periodic coupon or interest payments during the life of the deposit.
As an investment, LTNCDs are tax-exempt for qualified individuals or institutions if held for at least five years and are insured by the Philippine Deposit Insurance Corporation (PDIC) for up to P500,000.