Philippine Daily Inquirer
1:00 pm | Thursday, October 24th, 2013
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MANILA, Philippines – Metropolitan Bank and Trust Co. has joined the bandwagon of banks tapping the market for negotiable long-term-deposit instruments, expecting to raise as much as P20 billion after it launches its own such program early next year.
By offering these negotiable certificates of long-term deposit, or LTNCDs, Metrobank said it intends to “take advantage of the ample liquidity in the market and to lock in long-term funding.”
The first tranche of the program is expected to be launched early next year, subject to receipt of regulatory approvals, Metrobank disclosed to the Philippine Stock Exchange on Thursday.
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. up to a maximum of P500,000 per depositor. 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.
Metrobank was recently upgraded to investment grade status by global credit watchdog Moody’s Investors Service. The bank has a Bank Financial Strength Rating and deposit rating of Baa3, on par with the Republic of the Philippines.
Metrobank ended the first semester 2013 with P1.2 trillion in consolidated assets and the largest consolidated branch network among Philippine banks with 832 domestic branches supplemented by 1,822 ATMs nationwide.
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Tags: banks , Metrobank , Philippines , PSE
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