RCBC raises P5-B LTNCDs

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) has fully raised P5 billion in long-term negotiable certificates of deposit (LTNCD) ahead of the closing period, a company disclosure to the Philippine Stock Exchange said.

RCBC first vice president and corporate information officer Christina Alvarez said except for the issue date reset to Nov. 14, other features of the debt papers remain unchanged.

RCBC, the financial arm of the Yuchengco Group has  earlier extended the closing of the offer period for the P5-billion LTNCD offer.

RCBC informed the PSE that its LTNCD would close its offer period on Nov. 8 instead of Oct. 31.

The bank also moved the issue date of the five-year LTNCD to Nov. 14 from Nov. 8 due to shortened work week caused by the public holidays.

The bank’s LTNCD issuance is composed of two series: Series A which will bear an interest rate of 3.25 percent, and Series B at 3.5 percent.

The minimum denomination for the offer is P50,000 and in increments of P10,000.

RCBC has designated HSBC as its sole manager while RCBC, RCBC Capital Corp., RCBC Savings Bank are the selling agents.

It was noted that instead of issuing more shares or launching a new debt instrument, local banks are resorting to LTNCDs which consumers find more attractive because they are relatively safe yet high-yielding compared to traditional deposits.