The Metropolitan Bank & Trust Co. (Metrobank) on Tuesday bared the sale of a new long-term negotiable certificates of deposits (LTNCDs), whose proceeds will help finance its lending activities next year.
Metrobank Vice President and Investor Relations Head Juan Placido Mapa III said in a regulatory filing the LTNCDs will be sold at a rate of 4.25 percent per annum, payable quarterly.
The LTNCDs have a tenor of seven years and will mature on November 21, 2021. The minimum investment size is P50, 000 with increments of P50, 000 thereafter, Mapa said.
This represents the lender’s second offering of LTNCDs following the successful five-and-a-half-year LTNCD offer in October that generated P8 billion.
The sale also formed part of the P20-billion LTNCD program approved earlier by the Bangko Sentral ng Pilipinas (BSP).
Metrobank will issue LTNCDs in tranches with approved tenors ranging from five-and-one-fourth-year up to 10-years. The bank has up to the first quarter of 2015 to complete the program.
“The strong demand for the initial LTNCD tranche prompted the bank to launch a follow-on seven-year LTNCD to satisfy unmet client demand,” the bank said.
The public offer period for the new tranche of LTNCDs starts from November 4 to 14 this year. However, the bank reserves the right to adjust the timing of the offer period as necessary. Metrobank has mandated HSBC and ING Bank N.V., Manila Branch (ING) as joint lead arrangers and selling agents for the transaction.
Metrobank, First Metro Investment Corp. and Multinational Investment Bancorporation will also serve as selling agents.
MIB will act as market maker for the secondary trading of the LTNCDs, while the instrument is not yet listed on the Philippine Dealing and Exchange Corp. platform.
Genivi Factao