Monday, October 23, 2017
Close  
business / Headlines

China Bank to raise P5B for expansion

business / Headlines
  • share this

China Bank to raise P5B for expansion

/ 02:47 AM November 08, 2016

Sy family-led China Banking Corp. has launched a P5 billion offering of high-yielding deposit notes to support expansion plans.

This represents the first tranche of a P20-billion fund-raising program, which involves the Bangko Sentral ng Pilipinas-approved sale of long-term negotiable certificates of time deposits (LTNCDs).

The public offer period for the first tranche, which will have a maturity of five years and six months, will run from Nov. 7 until Nov. 11 this year.

ADVERTISEMENT

“This new issuance is expected to expand the bank’s long-term deposit base and boost its long-term asset growth,” the bank said.

The transaction marks the return of China Bank to the peso debt market since 2008.  It previously offered a five-year P5-billion issue, which was oversubscribed only two days into its offering period.

China Bank and the joint lead arrangers retain the option of adjusting the offer period as they deem necessary. Australia and New Zealand Banking Group Ltd (ANZ), The Hongkong and Shanghai Banking Corp. Ltd. (HSBC) and Standard Chartered Bank (SCB) have been appointed joint lead arrangers, joint book runners and selling agents. China Bank, China Bank Capital Corp. and Multinational Investment Bancorporation (MIB) will also serve as selling agents.

Under the BSP’s approval, China Bank will be able to issue multiple tranches of LTNCDs with tenors ranging between 5 and 10 years. The LTNCDs will be offered at a rate of 3.25 percent per annum, payable quarterly.  —Doris Dumlao-Abadilla

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, China Bank, economy, expansion, News
For feedback, complaints, or inquiries, contact us.




© Copyright 1997-2016 INQUIRER.net | All Rights Reserved