By James A. Loyola
Bank of the Philippine Islands (BPI) has raised over ₱3 billion through the issuance of Long-Term Negotiable Certificates of Time Deposit (LTNCTDs) which have been listed and are now tradable on the Philippine Dealing & Exchange Corp.
This issuance represents BPI’s third foray into the capital markets in 2019, following its US-dollar green bond issuance amounting to US$300 million and its Swiss Franc green bond issuance amounting to CHF100 million earlier in the year.
“This capital raise will help finance the growth of a loan book that, with every passing quarter, becomes a bit more green, a bit more sustainable,” said BPI President and CEO Cezar P. Consing.
The issuance was priced on October 4, 2019 at 4.00 percent p.a. payable quarterly, representing a discount of 34.7 basis points from the five-year BVAL on pricing date. The LTNCTDs have a tenor of 5.5 years.
The public offer period of the LTNCTDs ended last October 18. The Hongkong and Shanghai Banking Corporation, Limited is the sole arranger and participating selling agent while BPI Capital Corporation is the sole selling agent.
LTNCTDs are peso-denominated certificates of time deposit with a minimum maturity of five (5) years and are negotiable in the secondary market.
Historically, LTNCTDs offer higher interest rates than regular deposits. LTNCTDs are also insured with the PDIC subject to applicable rules and regulations on maximum insurance coverage.