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MANILA, Philippines – Sy-led BDO Unibank, Inc. (BDO) and Yuchengco-led Rizal Commercial Banking Corporation (RCBC) separately raised funds to finance growth objectives.
In their disclosures to the stock exchange on Thursday, March 7, BDO and RCBC respectively announced proceeds of P5 billion from loan instruments and P4.1 billion from shares sold.
BDO said it sold P5 billion worth of Long Term Negotiable Certificates of Time Deposit (LTNCDs) on the back of strong interest from retail and institutional investors.
The Sy-led bank said that the offer “will support the bank’s medium-term growth objectives and lengthen the maturity profile of its funding sources.”
LTNCDS are peso-denominated negotiable certificates of deposit that usually have a maturity period of five years or longer. In a previous PSE disclosure, BDO said that its LTNCDs will have a maturity period of 5 years and 6 months. LTNCDS are similar to time deposits only it prohibits investors from terminating the time deposit before its maturity.
The company first announced the offer on Monday, March 4. The offer period only lasted 3 days.
ING Bank Manila branch and Standard Chartered Bank were the joint lead arrangers and selling agents for the time deposits. BDO and BDO Private Bank also acted as selling agents.
RCBC, on the other hand, raised P4.1 billion through a share placement of 63.7 million shares of common stock at P64 per share. The offering was a top-up placement with Pan Malayan Management and Investment Corp. simultaneously selling and subscribing to 63.7 million new RCBC shares.
The transaction reduced Pan Malayan’s stake in RCBC from 50.5% to 47.8%.
RCBC said that the proceeds from the sale would be used to “support growth in its SME and consumer finance loan books through 2015.”
The bank added that shareholder Hexagon Investments also sold 31.8 million common shares. Credit Suisse (Singapore) Limited, Deutsche Bank AG, Macquarie Capital (Singapore) and Maybank ATR Kim Eng Capital Partners all served as bookrunners and placing agents. – Christian Bautista/Rappler.com
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