UCPB raises P3.15B from LTNCD issuance

MANILA, Philippines - United Coconut Planters Bank (UCPB) has raised P3.15 billion from the offering of long-term negotiable certificates of time deposit (LTNCD).

LTNCD are time deposits with longer maturities of five years and carry higher yields. While they cannot be pre-terminated, unlike regular time deposits, they are negotiable so they can be sold at market prices to other investors through the secondary market.

UCPB officials said proceeds of the offering will be used to expand the bank’s lending operations, particularly in the consumer sector.

The LTNCD carried a coupon rate of six percent, payable quarterly over a period of five years and three months, or up to November 2016.

UCPB executive vice president and treasurer Eulogio Catabran said the total amount generated from the offering exceeded the bank’s target of P3 billion despite market jitters caused by the downgrade of the US debt rating by Standard & Poor’s.

Citicorp Capital Philippines Inc. was the lead arranger for the issue.

Citicorp Capital Philippines director Kristine Braden said the issue’s four selling agents, namely Citicorp Financial Services and Insurance Brokerage Philippines Inc., Multinational Investment Bancorporation, Philippine Commercial Capital Inc., and Rizal Commercial Banking Corp. (RCBC), raised a substantial amount from non-UCPB clients.

 “The broad market support for the LTNCD bodes well for future investment offerings by UCPB, as it shows that the bank continues to have access to non-UCPB clients for its capital markets initiatives,” Braden said in a statement.

This is UCPB’s second successful LTNCD issuance in less than a year. The bank had its maiden LTNCD offering worth P4.5 billion in November 2010. Citicorp Capital Philippines Inc. was also the lead arranger.

UCPB operates 183 branches nationwide and ranked 12th largest bank in terms of resources with total assets of P179.6 billion as of end-June this year.