Philippine Bank of Communications (PBCOM) raised a little over P2.9 billion in its issuance of long-term negotiable certificates of time deposits (LTNCD). Nearly the entire amount was sourced from its own branch network, a fact that President Patricia May Siy recognized in her speech at the listing ceremony at the Philippine Dealing Exchange (PDEx) where she described it as a vote of confidence in the Bank’s growth story from its strong customer base. She acknowledged the support from the Bank’s customers in spite of numerous alternatives in the capital markets.
The amount was more than the initial planned volume of P2 billion. The debt instrument will be due in 2024 and will fetch an interest rate of 5.625% per annum, payable quarterly.
This was the maiden issuance for the Bank, which has been in the banking industry for almost 80 years. In 2014, Business Tycoon Lucio Co entered into a strategic partnership with the Bank that has proven beneficial to both sides. This relationship has led to numerous synergies between the Bank and the Lucio Co group of companies including retail giant Puregold and membership shopping pioneer S&R. The funds raised through the exercise will be used to leverage these synergies further and to fund the Bank’s long term lending programs.