Security Bank eyes P20B from LTNCDs
Security Bank Corp. FILE PHOTO
MANILA, Philippines—Security Bank Corp. is raising up to P20 billion from the issuance of high-yielding long-term deposit notes to fund expansion plans.
In a disclosure to the Philippine Stock Exchange on Monday, Security Bank said its board of directors had approved a plan to raise this amount through the issuance of long-term negotiable certificates of deposit (LTNCDs).
The issuance will be subject to regulatory approval and prevailing market conditions, according to the bank.
“The LTNCD issuance will be done in multiple-tranche format whereby there may be different maturity dates per tranche,” the bank added.
“The proceeds from the planned LTNCDs will be used to fund Security Bank’s expansion of earning assets in the coming periods as well as provide customers and investors with suitable investment products,” it said.
LTNCDs are negotiable certificates of time deposits and are tax exempt for qualified individuals if held for at least five years. The LTNCDs are insured by the Philippine Deposit Insurance Corp. (PDIC) up to a maximum coverage per depositor, currently at P500,000.
These are bank products with long tenors, usually five to 10 years, which are offered to investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits.
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