BSP approves P3-B UCPB time deposit offering
The Bangko Sentral ng Pilipinas has approved United Coconut Planters Bankâs (UCPB) planned P3-billion long-term negotiable certificates of time deposit (LTNCD) to be offered next month. âWith the upbeat sentiments on local financial conditions, we see corporates and individuals continuing to go for long-term, low-risk investment outlets that provide regular earnings. UCPB executive vice president and treasurer Eulogio Catabran said in a statement Monday. âThatâs why weâre coming back to the LTNCD market so soon," ha added. This is UCPBâs second LTNCD issuance this year. LTNCDs are time deposits with longer maturities of five years and carry higher yields. While LTNCDs cannot be pre-terminated, unlike regular time deposits, depositors may sell the certificates to other investors in the secondary market. Catabran said UCPB will use the proceeds from next monthâs LTNCD offering to boost the bankâs long-term deposit base and expands its long-term assets. Strong demand for loans âWe expect demand for loans to remain strong particularly in the consumer sector where margins are higher, and that's where weâll deploy the funds," the bank official added. UCPB has been expanding its loan portfolio to grow earnings. UCPBâs total deposits as of March 2011 reached P148.6 billion, up by P15.5 billion or 11.6 percent from P133.1 billion a year earlier. Total loans rose by P9.3 billion to P63.5 billion from P54.2 billion, with consumer loans growing by 48.9 percent. First-quarter loan earnings grew by 28.9 percent year-on-year, raising UCPBâs total interest income to P2.4 billion, according to the bank. The bank has tapped Citicorp Capital Philippines Inc. to arrange the new LTNCD offering and appointed Multinational Investment Bancorporation, Citicorp Financial Services and Insurance Brokerage Philippines Inc., Philippine Commercial Capital, Inc., Rizal Commercial Banking Corp., as well as itself, as selling agents. âWeâre discussing with our financial advisors the pricing and timing of the issue and will make an announcement on the yield and the schedule of the offering next week," Catabran said. â PE/VS, GMA News