EastWest Bank, one of the fastest-growing banks in the country today, has received approval from the Bangko Sentral ng Pilipinas (BSP) to issue Php 5.0 Billion worth of Long Term Negotiable Certificates of Time Deposits (LTNCDs). This is EastWest’s second LTNCD issuance, its maiden offering being a year ago.

EastWest will begin its six-month weekly tranched offering on November 25, 2013. However, the bank may modify the schedules as needed. The final maturity date of the said long-term deposit instruments is on June 5, 2019. The initial LTNCD offering is slated to carry a yield in the range of 3.125% to 3.375% per annum depending on market conditions and demand for the instrument. Final pricing will be set on or before the end of the first offering on November 29, 2013.

LTNCDs are time deposits but have longer maturity and provide higher returns. These products are ideal for investors who are looking for higher yields as compared to regular time deposits. LTNCDs cannot be pre-terminated but can be sold in the secondary market to other investors. These are tax-free if held to maturity and are covered by the Philippine Deposit Insurance Corporation up to a maximum of Php 500,000 per depositor.

EastWest reported a third quarter net income of Php 1.7 Billion or a 28% year-on-year increase. Its capital adequacy ratio remains more than adequate at 17.1% as of the third quarter of the year, much higher than the minimum 10% required by the BSP. The bank’s Tier 1 ratio stood at 13.8%.

EastWest is a subsidiary of the Filinvest Development Corporation (FDC), one of the largest and well established business conglomerates in the Philippines. FDC, established in 1955, is identified with the Gotianun family and aside from banking, its business interest include real estate, sugar, hospitality and tourism, and power generation.