Chinabank raises P10.25B in the huge offer of term deposit

China Banking Corp. (Chinabank), a Sy family company, raised 10.25 billion pesos in a high-yield deposit bond offering, boosting its ability to support important projects such as infrastructure and energy

amount was increased by the issuance of long-term deposit certificates (LTNCD) maturing in 2024. These were valued at 4.55% per annum and marked the largest issue of LTNCD in the banking sector until this year. 19659002] The offer was oversubscribed by twice the basic offer, allowing Chinabank to raise the offer of the original size of 5 billion pesos in an agreement only arranged by the British banking giant HSBC.

LTNCDs, the first tranche of Chinabank planned The £ 20 billion LTNCD program has been listed on the Philippine Dealing & Exchange Corp. (PDEX) Thursday.

LTNCDs are negotiable certificates for term deposits and are exempt from taxation for qualified persons if they are held for at least five years. ars. LTNCDs are insured by the Philippine Deposit Insurance Corp. for a maximum coverage of 500,000 pesos per depositor.

Benedict Lee Chan, treasurer of Chinabank, told reporters that this year the bank's loan portfolio would likely increase by 15 to 18%

"Until now, the loan application (loan In the first half of the year, we expect this trend to improve as companies are now in position. know that the interest rate is rising, "added Chan, adding that private borrowers may want to lock in their funds before the cost of borrowing continues to rise.

The issue of the remaining 10 billion LTNCDs would depend on market conditions. Chan said.

With new funds in place, Chinabank aims to stabilize its net interest margins around 3.5% despite strong competition with other lenders.

Chinabank also plans to raise 30 billion short-term notes in the second half of this year. "I hope we will issue other P10 to P15 billion this side, depending on market conditions," Chan said.

Patrick Cheng, CFO of Chinabank, said in the coming years that the bank's loan portfolio could increase. a slower pace of 15% compared to the 18% observed over the past three or four years. "There are geopolitical and other uncertainties at the moment, so there may be some hindsight," he said.

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