Security Bank okays P10-B long-term notes

MANILA, Philippines - Security Bank Corp., which has consistently reported above 50 percent growth in net income for the past four years, has approved the issuance of up to P10 billion worth of long-term negotiable certificates.

In its disclosure to the Philippine Stock Exchange yesterday, Security Bank said the long term negotiable certificates of deposit (LTNCDs) have a maturity of five to seven years.

LTNCDs are similar to time deposit accounts except they are long-term in nature, usually with maturities of at least five years and one day. Unlike normal time deposits, LTNCDs cannot be pre-terminated, meaning the investor has to wait for the time deposit to mature.

LTNCDs are negotiable, which means they can be used as collateral for a bank loan or sold to other investors.