Manila, Philippines

Metrobank LTNCD and Petron Corp Bonds 3.5% per Annum

Metrobank LTNCD and Petron Corp Bonds 3.5% per Annum
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Here are two more investment options for Juan to consider, especially for those with long term, low risk investment O-H-A. Works pretty much like a time deposit but much higher rates.

Metrobank LTNCD and Petron Corp Bonds 3.5% per Annum

Metrobank (PSE: MBT) is offering Long-term Negotiable Certificates of Time Deposits (LTNCDs) while Petron Corporation (PSE: PCOR) is offering corporate bonds.

Metrobank LTNCD

This issue is worth PHP5-billion, part of the PHP20-billion LTNCD that MBT board approved in June. Here’s what we know so far:

  • Minimum: PHP50,000, increments of PHP50,000 thereafter
  • Rate: 3.5% per annum, payable quarterly
  • Tenor: 7 years
  • Offer Period: August 30 to September 12, 2016

Unlike the usual bank time deposits, the LTNCDs cannot be pre-terminated. Rather, it can be sold in the secondary market (hence the word negotiable), in case owner has to liquidate/ unlock his time deposit.

Metrobank says it is taking advantage of the strong liquidity in the Philippine monetary system, as well as the low interest regime, for it to lock-in its cash needs for long term funding.

Interested? Inquire with Metrobank.


Petron Corporate Bonds

We previously shared with you corporate bonds of SMC Global Power Holdings, which is technically, a sister-company of Petron. We also shared previously the preferred shares issued by SMC, again another related company. So this time, Petron is the one raising funds.

If you think concentration risk is manageable, read on (anyway these are all big companies even if they are related through ownership).

  • Minimum: PHP50,000, increments of PHP10,000 thereafter
  • Rate: Indicative at 3.5% to 4.25% per annum (Series A), 4.125% to 4.625% (Series B), payable quarterly
  • Tenor: 5 years (Series A), 7 years (Series B)
  • Public Offer Period: October 10 to 14, 2016

Target listing date is October 21. Underwriters are SB Capital, (PSE: SECB), BDO Capital and Investments (PSE: BDO) and BPI Capital (PSE: BPI). If interested, go to their nearest branches. I suggest you don’t wait for the public offer period as banks (who represent their Capital Corp arms) accept reservations anyway.

Again, note that rates are still indicative at this point, but final rate should be within provided range. Quoted rates are also gross rates, which means, as you’ve guessed, subject to taxes.

Petron’s bond rating is Aaa, funds to be used to refinance existing short and long term debts, and for other general corporate purposes.

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Photos: Company logos are from the respective company websites.


 Investments For Filipinos PSE: BDO PSE: BPI PSE: MBT PSE: PCOR PSE: SECB

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