East West eyes P10B long-term deposit offering

GOTIANUN-led East West Bank plans to raise as much as P10 billion from an offering of high-yielding long-term deposits, taking advantage of cash-awash financial system.

In a disclosure to the Philippine Stock Exchange on Friday, East West said its board had approved the issuance of up to P10 billion long term negotiable certificate of deposit (LTNCD).

LTNCDs are time deposits but have longer maturity and carry higher yields. While they cannot be pre-terminated unlike regular time deposits, they are negotiable so they can be sold in the secondary market to other investors. By using the LTNCD structure, which is tax-free because of the long tenor, banks can offer better yields to clients.