China Bank raising funds
Sy family-led China Banking Corp. is planning a P50-billion fund-raising program involving the offering of a mix of high-yielding deposit notes, bonds and commercial papers.
“This program will be used to fund the bank’s strategic initiatives and expansion,” China Bank disclosed to the Philippine Stock Exchange yesterday.
Based on the disclosure, the funding program could be a combination of long-term negotiable certificate of time deposit (LTNCDs), retail bonds and commercial papers.
LTNCDs are negotiable certificates of time deposit issued by banks, with a minimum maturity of five years and denominated in peso. They usually have higher yields compared to regular time deposits or savings accounts. Interest on LTNCTDs is tax-free if they are in the name of the individual holder and held for at least five years.
Retail bonds are long-term debt paper while commercial papers are short-term unsecured promissory notes or IOUs.—DORIS DUMLAO-ABADILLA
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