RCBP raises P3.85 B in negotiable long-term deposit certificates

MANILA, Philippines—The Rizal Commercial Banking Corp. has raised P3.85 billion in fresh funds for expansion from a new issuance of peso-denominated debt instruments based on high-yielding long-term deposits.

RCBC told the Philippine Stock Exchange on Thursday that it had issued long-term negotiable certificates of deposits (LTNCDs) consisting of P2.03 billion worth of fixed-rate notes and P1.82 billion worth zero-coupon notes.

The LTNCDs mature in five years and six months or by June 29, 2017.

The fixed-rate LTNCDs carry a coupon of 5.25 percent p.a. while the zero coupon LTNCDs  were priced at a yield of 5.5 percent.

“The net proceeds of the transaction will be used by the bank to expand its long-term deposit base and support long-term asset growth and for other general funding purposes,” the bank said.

The Manila branches of Deutsche Bank AG and ING Bank N.V. acted as the joint lead arrangers and selling agents for the transaction while Multinational Investment Bancorporation was also appointed as additional selling agent and market maker.