The board of Metropolitan Bank and Trust Co. (Metrobank) announced on Thursday the issuance of P20-billion long-term negotiable certificates of deposits (LTNCDs) to lock in long-term funding.
In a disclosure to the Philippine Stock Exchange, the Ty family-led lender announced the issuance of the LTNCDs amounting to P20 billion in one or two tranches, with P10 billion to P20 billion per tranche.
Metrobank last entered the LTNCD market in 2014, but is now open again due to favorable market conditions.
“The rationale for the LTNCD is to lock in long-term funding and take advantage of the liquidity in the system and relatively low interest rates,” said Estela Calderon, Metrobank Corporate Communications head.
The tenor of the LTNCD ranges from five-and-a-half to 10 years and is subject to market conditions.
“We will apply for a program for one year and will most likely issue in tranches,” she added.
Calderon said the timing of the issuance will be subject to regulatory approvals and market conditions.
The disclosure also said Metrobank President Fabian S. Dee has been granted authority to appoint the arrangers and required third parties for the issue, with authority to approve the pertinent details, including the timing of the launch, issue size, tenor, interest rate and denomination.