China Bank to Issue PhP20B LTNCDs

Makati—(PHStocks)—China Banking Corp. (China Bank, PSE: CHIB) plans to issue up to P20 billion long-term negotiable certificates of time deposits (LTNCD) to support its strategic initiatives and business expansion.

China Bank will apply for a shelf program and the issue will be in tranches of P5 to P10 billion each with tenors ranging from five to seven years. The timing will be subject to regulatory approvals and tranche issue size and implementation will depend on prevailing market conditions. China Bank expects to tap their existing clients and depositors for distribution of the LTNCD.

LTNCDs are time deposits that have longer maturity and are higher yielding than regular deposits. These instruments are negotiable and insured with the Philippine Deposit Insurance Corp. up to a maximum coverage which is currently at PhP500,000.00 per depositor.

The last time that China Bank entered the LTNCD market was in 2008 when it successfully offered its five-year PhP5 billion LTNCD maiden issue which was oversubscribed only two (2) days into its offering period. For this latest offering, the Management Committee was granted authority by the Board to appoint the arranger/s and required third parties and approve commercial terms of the issue. This issuance is expected to expand the Bank’s long-term deposit base and boost its long-term asset growth.

China Bank continues to be one of the leading banks in the industry, with a total capital adequacy ratio of 12.28%. It is the eighth largest publicly-listed bank in market capitalization.

China Bank Capital Corporation, the investment arm of China Bank, has completed its first full year of operations and has recently established two additional subsidiaries to complete its suite of investment banking services. China Bank Securities Corporation, a wholly-owned stock brokerage house; and CBC Assets One (SPC) Inc., a special purpose corporation subsidiary, will round out China Bank Capital’s offerings and help improve its capabilities on the origination side.

China Bank, founded in 1920, is the country’s first privately owned local commercial bank and now one of the largest private universal banks in the Philippines providing a full range of banking products and services to corporate, commercial, and retail customers through over 500 branches nationwide (includes thrift bank subsidiary, China Bank Savings CBS). China Bank also recently won a Bell Award for Corporate Governance for the fourth year in a row. It is again the only bank among the awardees in the publicly-listed company category and the only awardee to have won in all Bell Awards since it was launched by the Philippine Stock Exchange in 2012.

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