Thursday, June 21, 2018
  • share this

RCBC to issue P5B in deposit certificates

/ 08:18 PM September 20, 2013

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

Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, long-term negotiable certificates of deposits, LTNCD, RCBC
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2018 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.