The Bangko Sentral ng Pilipinas approved Robinsons Bank Corp.’s application to issue long-term negotiable certificates of deposit worth at least P3 billion.
The Monetary Board, the policy-making body of Bangko Sentral, issued MB Resolution No. 717 approving Robinsons Bank’s plan, with an option to increase the issue size up to P5 billion in case of oversubscription.
Robinsons Bank, the banking and financial arm of the JG Group of companies, said the issuance would have a term of five and one-half years and a rate of 4.125 percent annually. The interest payments will be made every quarter in arrears.
The instruments are negotiable and insured with the Philippine Deposit Insurance Corp. up to P500,000.00 per depositor. LTNCDs are tax-exempt for qualified individuals if held for more than five years.
The minimum investment is P50,000 with increments of P10,000. The offer period is from May 23 to June 2, 2017 while the issue date is on June 14, 2017. BPI Capital Corp. is the sole lead arranger and selling agent together with Robinsons Bank.
The LTNCDs will be listed on the Philippine Dealing and Exchange Corp on issue date.
Robinsons Bank president Elfren Antonio Sarte said the proceeds of the LTNCDs would support the bank’s growth initiatives. Robinsons Bank will issue credit cards soon.