GOTIANUN-LED EastWest Bank has started offering clients a new series of high-yielding deposit products worth as much as P5 billion, taking advantage of the liquid local financial system to raise long-term funds.
In a disclosure to the Philippine Stock Exchange on Monday, EastWest Bank said this new tranche of long-term negotiable certificates of deposits (LTNCDs) maturing on June 5, 2019 will yield 3.125 percent to 3.375 percent per annum “depending on market conditions and demand for the instrument.”
The bank has existing authority to offer LTNCDs with a minimum maturity of five years and one day, up to a maximum of five years and six months from the issue date. The issue date will be subject to the agreement between EastWest and its arranger Unicapital Inc.
“This offering will be made available to its valued clients in a program of weekly tranches over the next six months,” the disclosure said.
“The offering may end earlier should the approved P5 billion face value be exhausted earlier,” it added.
EastWest earlier obtained approval from the Bangko Sentral ng Pilipinas to offer as much as P5 billion of these LTNCDs, joining the bandwagon of banks offering such instruments to boost funds for expansion.
LTNCDs are time deposits but have longer maturities and carry higher yields. By using the LTNCD structure, which is tax-free because of the long tenor, banks can offer better yields to clients. Doris C. Dumlao