P3 billion long-term issue draws P150 million extra – UCPB

United Coconut Planters Bank (UCPB) dared to raise P3 billion from the local debt market and was rewarded with about P150 million in extra funds for expanding its lending operations. UCPB executive vice president and treasurer Eulogio Catabran said proceeds from the week-long public offering of long-term negotiable certificates (LTNCD) surpassed target, indicating that local lenders are unmindful of the jitters from the United States’ debt problems. “The broad market support for the LTNCD bodes well for future investment offerings by UCPB, as it shows that UCPB continues to have access to non-UCPB clients for its capital markets initiatives," according to Citicorp Capital Philippines director Kristine Braden. UCPB’s LTNCD offering this August is the second since the maiden issue in November 2010 with Citicorp Capital Philippines Inc. arranging both. The coupon rate of UCPB’s latest LTNCD was 6 percent, payable quarterly up to November 2016. Consumer loans expanded by 39 percent and served as the impetus for UCPB lending operations which grew 15 percent to P64 billion as of end-June from P56 billion a year earlier. In turn, earnings from the loans increased 23 percent year-on-year and helped lift the bank’s first half net income to P1.3 billion, up 18 percent from P1.1 billion year-on-year. — ELR/VS, GMA News