Philippines’ Metrobank plans to raise US$464 million

Will tap the market for negotiable long-term deposit instruments.

Metropolitan Bank and Trust Company expects to raise the amount after it launches its own long-term negotiable certificates of deposits or LTNCD program early next year. By offering LTNCDs, Metrobank intends to take advantage of the ample liquidity in the market and to lock in long-term funding.

The first tranche of the program is expected to be launched early 2014 subject to receipt of regulatory approvals, Metrobank said. LTNCDs are negotiable certificates of time deposits and are tax exempt for qualified individuals if held for at least five years.

These are bank products with long tenors, usually five to 10 years, offered to investors looking for a higher interest rate compared to regular savings accounts or shorter-term deposits. They are insured by the Philippine Deposit Insurance Corporation up to a maximum of P500,000 per depositor.