UnionBank Launches P3-B LTNCD Offering

Listed Union Bank of the Philippines on Tuesday launched a Php3-billion offering of high-yielding deposit notes to support business expansion plans and improve deposit maturity profile.

The offering represents the initial tranche of up to Php20 billion worth of long-term negotiable certificates of time deposit (LTNCDs) issuance approved by the Bangko Sentral ng Pilipinas (BSP) in tenors of 5.5 to 10 years in multiple tranches over a period of one year.

“The Bank’s initial offering of at least Php3.0 billion, with an oversubscription option, will have a tenor of five years and six months with an indicative rate of 4.125 to 4.375 percent per annum,” it told the local bourse.

The final rate for the LTNCDs will be determined prior to the end of the public offer period, which will run until February 9.

Minimum investment in the LTNCDs has been set at Php50,000 and increments of Php10,000 thereafter. Interest payments will be made quarterly.

The issue date is set on February 19.

Standard Chartered Bank was tapped as the sole lead arranger and bookrunner for the issuance, and will also act as a selling agent together with UnionBank and Multinational Investment Bancorporation for the offering.

The LTNCDs will be listed on the Philippine Dealing Exchange Corporation.

UnionBank provides a wide range of retail, commercial, and corporate banking products and services, including loan and deposit products, cash management services, trust banking services, consumer finance, treasury, and electronic banking.