Metrobank eyes P20-B LTNCDs

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) is planning to issue P20 billion worth of long-term negotiable certificates of deposit (LTNCDs) to take advantage of the ample liquidity in the market.

In a disclosure to the Philippine Stock Exchange (PSE), Metrobank said its board has approved the issuance, which is also aimed at locking-in long term funding.

Metrobank, the main banking arm of the Ty family, said it would issue the first tranche of the LTCNDs early next year, subject to regulatory approvals.

LTNCDs are negotiable certificates of time deposit with a designated maturity or tenor representing a bank’s obligation to pay the face value upon maturity as well as make periodic coupon or interest payments during the life of the deposit.

Additionally, LTNCDs are insured by the Philippine Deposit and lnsurance Corp. (PDIC) for up to P500,000 and are tax exempt for qualified individuals if held for at least five years.

Recently, Metrobank was recently upgraded to investment grade status by Moody’s Investors Service.

The bank has a Bank Financial Strength Rating (BFSR) and deposit rating of Baa3, at par with the Philippines sovereign rating.

Metrobank was also recently named the 2013 Strongest Bank in the Philippines by The Asian Banker. This is the second time for Metrobank to receive the recognition. The Asian Banker evaluated all commercial banks in the Asia-Pacific region across different financial metrics including balance sheet quality, risk management and profitability.

Metrobank ended the first semester of 2013 with P1.2 trillion in consolidated assets and the largest consolidated branch network among Philippine banks with 832 domestic branches supplemented by 1,822 ATMs nationwide.

As a universal bank, Metrobank has 33 foreign branches, subsidiaries and representative offices.