THE Metropolitan Bank and Trust Co. (Metrobank) on Tuesday started selling P5 billion worth of long-term negotiable certificates of deposits (LTNCDs).
“We’re looking at P5 billion but we have the option to upsize if there’s strong demand,” Metrobank Vice President and Head of Investor Relations Juan Placido III Mapa told the BusinessMirror.
“This will allow us to lock in long-term funding,” he added.
The P5-billion LTNCD represents the first of a total P20 billion LTNCD program approved by the Metrobank board last year. The offer period for the LTNCDs starts from October 7 to 17.
However, the bank reserves the right to adjust the timing of the offer period as necessary. The LTNCDs will be old at a rate of 4 percent per annum, payable quarterly. It will have a te or of five-and-an-half years, maturing in April 2020. The minimum investment size is P50,000, with increments of P50,000 thereafter.
Metrobank mandated the British financial services giant HSBC and ING Bank N.V., Manila branch as joint lead arrangers and selling agents for this transaction.
Metrobank, First Metro Investment Corp. and Multinational Investment Bancorporation (MIB) will also serve as selling agents for the offer.
MIB will act as market maker for the secondary trading of the LTNCDs, while the instrument is not yet listed in the Philippine Dealing and Exchange Corp. platform.