Friday, 03 December 2010 00:00
United Coconut Planters Bank (UCPB) said it raised more money than it planned from the sale of a long-term deposit instrument amid strong demand from investors. In a statement, UCPB said it raised P4.5 billion from its issuance of long-term negotiable certificates of deposit (LTNCD), or P1.5 billion more than the planned P3 billion during the one-week offering period that ended on November 19.
"We were surprised by the market's overwhelming response. Though we had anticipated the issue to perform well, we didn't expect demand to be this enthusiastic," Eulogio Catabran, UCPB executive vice president and treasurer, said.
The LTNCD carried a fixed rate of 6.25 percent per annum payable quarterly over the next five years and three months or until February 2016. The rate was set at 100 basis points over the five-year benchmark rate recorded last November 4.
UCPB tapped Citicorp Capital Philippines Inc. to arrange the LTNCD offering and appointed Multinational Investment Bancorporation, Citicorp Financial Services and Insurance Brokerage Philippines Inc., as well as itself, as selling agents.
LTNCD are like time deposits but have longer maturities of five years or more and cannot be pre-terminated. However, being negotiable, they can be sold to other investors and used as collateral for loans.
Catabran said the bank will use the proceeds to beef up its deposit base so it can accelerate the expansion of long-term assets, mainly loans to the middle market and the consumer sector.
The bank's total deposits grew 12 percent to P137.7 billion in the first semester this year from P123.3 billion last year.
Its loan portfolio expanded by 20 percent to P58 billion from last year's P48.2 billion.
The loan expansion keyed the 25-percent increase in the bank's interest income during the period, raising profit as of June this year to P1.306 billion, a turnaround from a loss of P172 million a year ago.
Lailany P. Gomez
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CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
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CONSULTING - http://www.carlosani.com
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