RCBC offers P5B long-term deposit notes at 3.25-3.5%

THE RCBC Plaza. INQUIRER FILE PHOTO

MANILA, Philippines–Yuchengco-led Rizal Commercial Banking Corp. started on Thursday a P5-billion fund-raising via the offering of long-term negotiable certificates of deposits (LTNCDs).

RCBC is offering LTNCDs with a tenor of five years and six months at an indicative interest rate range between 3.25 percent and 3.5 percent per annum, the bank disclosed to the Philippine Stock Exchange.

The offering will run until October 31 but RCBC may opt to shorten the offering period. Tentative issue date is Nov. 8 this year.

“RCBC’s issuance of Philippine peso-denominated LTNCDs will be used to expand its long-term deposit base, support long-term growth and for other general funding purposes

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. These deposits are covered with deposit insurance with the Philippine Deposit Insurance Corporation up to a maximum of P500,000 per depositor.

The instruments are offered by RCBC for a minimum denomination of P50,000 and in increments of P10,000 thereafter.

HSBC is the sole arranger of this offering while the selling agents are RCBC, RCBC Capital Corp., RCBC Savings Bank and HSBC.