China Bank eyes additional P20 B from LTNCD issue

MANILA, Philippines — China Banking Corp. is raising as much as P20 billion via the issuance of long term negotiable certificates of time deposits (LTNCDs) to boost the bank’s assets and bankroll its expansion plans.

In a disclosure to the Philippine Stock Exchange (PSE), China Bank said its board of directors approved the fund raising activity during its regular meeting last Wednesday.

Proceeds of the fund raising activity, the bank said, would be used to support its asset generation plans and expansion programs.

China Bank, the country’s seventh largest bank in terms of assets, has raised P26.18 billion from the issuance of LTNCDs over the last three years.

Last June 28, China Bank completed its maiden fixed rate bonds issue where it raised at least P5 billion. The bonds due January 2021 with an annual interest rate of 5.7 percent will be listed on the Philippine Dealing and Exchange (PDEx) platform on July 10.

The bond issue is part of China Bank’s planned P75-billion fund raising program for the next three years to support its expansion and strategic initiatives.

China Bank’s issuance retail bonds and commercial papers is also in line with its intention to be an active participant in the ongoing economic expansion of the country and the government’s infrastructure initiatives.

Earnings of the bank owned by the family of the late businessman Henry Sy jumped by 24 percent to P1.9 billion in the first quarter from P1.5 billion in the same quarter last year.

China Bank’s total assets grew by 23 percent to P889 billion in tandem with the growth of its core businesses.

Its loan book expanded by 13 percent to P515 billion due to strong demand from all customer segments, while its deposit base increased by 17 percent to P720 billion.