China Banking Corporation (China Bank) has received the approval of the Bangko Sentral ng Pilipinas (BSP) for its expansion project.
Alexander Escucha is the corporate information officer and senior vice president at China Bank.
He relayed that the Monetary Board of the Philippine central bank issued Resolution 247 last February 13.
He cited in a disclosure to the Philippine Stock Exchange that the BSP has given the seal of approval for the request of China Bank to issue an unsecured subordinated loan.
Philippine digital and print English-language daily newspaper Philippine Star reported that, under Basel III, this debt qualifies as Tier 2 capital.
China Bank is once again tapping the local debt market to accumulate as much as P15 billion.
The financial firm said that it would use this funding to expand its operations and for its strategic plans.
Last September 2019, the board of directors of China Bank had approved the intended fundraising venture.
Aside from this activity, China Bank also plans to amass up to P20 billion.
To achieve this target, the bank reportedly intends to employ the issuance of long-term negotiable certificates of deposits or LTNCDs as its vehicle.
Aside from the growth of the company, China Bank targets the generation of assets for this fundraising activity.
In April 2019, the financial firm that the Sy family owns set up a P75-billion bond program.
The banking institution aimed to reduce its dependence on the deposits of its clients. Besides, it desired to offer itself more alternatives to raise money.
Of the total amount it accumulated, the Philippine banking institution triumphantly collected P30 billion.
Its offering of its maiden peso fixed-rate bond that is due next year helped in this fundraising venture.
The bond was oversubscribed six-fold in July last year. In terms of capital and assets, China Bank is the fifth-largest private banking institution.
It possesses P117.39 billion in capital. Also, it has P858.28 billion in assets.
The deposit base of the financial company totaled to P777.2 billion. Meanwhile, its asset base registered a 10.1-percent surge to P953.7 billion.
These figures come as its loan book amounted to P559.3 billion.
From January to September 2019, the net income of China Bank skyrocketed to P6.7 billion.
These numbers indicate an upsurge of 20.6 percent. They are higher than the P5.6 billion posted in the same time in 2018.
On Thursday, February 20, 2020, China Banking Corporation PSE: CHIB) closed at P25.05 per share. The total value reached P22,545.00.
The 52-week high of China Bank is at P28.70. Meanwhile, its 52-week low is at P24.70.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
