RCBC to issue P5B in deposit certificates


Listed Rizal Commercial Banking Corp. (RCBC) has been given the regulatory green light to issue up to P5 billion in long-term negotiable certificates of deposits (LTNCD), which would allow the bank to lock-in funding for loans with longer maturities.

This follows moves by other major banks to raise fresh funds or replace previously-issued instruments to take advantage of cheap money ahead of the expected rise in interest rates.

In a disclosure, Yuchengco-led RCBC said the central bank’s Monetary Board (MB) had approved the bank’s plan to issue LTNCDs.

“RCBC plans to commence the offer in the coming weeks, subject to market conditions and compliance with regulatory requirements,” the bank told the local bourse.

Last July, Eastwest Banking Corp. announced it would issue P5 billion-worth of LTNCDs. This follows a similar transaction by the same bank in November last year.

Lucio Tan-led Philippine National Bank (PNB) earlier completed its own P5-billion LTNCD issuance.

Last month, BSP Deputy Governor Nestor A. Espenilla Jr. said banks were expected to raise more funds in the coming months to support their plans to grow their portfolios.

RCBC’s plan to issue LTNCDs follows the recent completion of its divestment from its property units, effectively erasing equity exposure to the real estate sector.

This means the bank will be able to extend more loans to the commercial and residential real estate sector without breaching the 20-percent exposure limit set by the central bank.

RCBC grew its first-half net profit by 5.18 percent year on year to P3.17 billion on higher interest earnings. Paolo G. Montecillo

Get Inquirer updates while on the go, add us on these apps:

Inquirer Viber

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • joboni96

    madedenggoy na naman pilipino
    ng intsik switik

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


editors' picks



latest videos