How to compute your Time Deposit income
March 1, 2010
We recently received an email from one of our readers asking how to determine the interest earnings on his time deposit account. In response, we explain below how exactly it’s being computed.
Unionbank (UBP)’s Tier 2 notes
October 2, 2009
The Unionbank of the Philippines (UBP) will be issuing P5 billion worth of unsecured, subordinated Tier 2 notes with a 7.375% net interest rate per annum.
The offer date is up to Tuesday, October 6, 2009 and the issue date is on October 14, 2009.
The company said proceeds from the notes will be used in the expansion of its consumer loans portfolio.
What is a Tier 2 Note?
Philippine Retail Treasury Bonds (RTB) offering
September 15, 2009
The auction of the Philippine government’s P5 billion worth of Retail Treasury Bonds (RTB) is scheduled today.
What are RTBs?
The Retail Treasury Bond (RTB) is a fixed-income instrument issued by the government as a way of raising funds. Since it is backed by the Philippine government, it is generally considered a safe and liquid investment opportunity.
How to invest in SDA – Special Deposit Accounts
April 24, 2009
What alternatives do you have if you have extra money which you won’t need in the near future and which you want to place in a safe investment?
Well, the easiest choice is to put it in a bank’s savings account. A savings account is highly liquid — meaning you can withdraw your money anytime you want. It is also safe because deposits up to P250,000 are covered by the Philippine Deposit Insurance Corporation.
If you want higher interest rate than a savings account, you may opt for a time deposit. Here you park your money for a certain period of time and, in return, the bank offers you an interest rate relatively higher than what your regular savings account will get. Like a savings account, time deposits are covered by the PDIC up to P250,000 per depositor.
Now, what if you still want a higher interest rate but are not willing to take additional risk? That’s when you can try investing in Special Deposit Accounts or SDAs.
Philippine National Bank (PNB)’s LTNCD offering
March 17, 2009
Those looking for safe but higher-yielding instruments can turn to Long-Term Negotiable Certificates of Deposits (LTNCD). The Philippine National Bank is expected to issue a minimum of P3 billion worth of LTNCDs in the next few days.
What is LTNCD?
Long-term negotiable certificates of deposits (LTNCDs) are peso-denominated negotiable certificates of deposits that mature after at least five years.
San Miguel Brewery (SMB) bonds in the Philippines
March 17, 2009
In what is touted as the biggest corporate bond issue in the Philippines, beer company San Miguel Brewery, Inc. (SMB) successfully raised P38.8 billion or US$800 million during this week’s sale of its fixed-rate bonds.
Investment Product: Ayala Corp’s Preferred Shares
November 14, 2008
Ayala Corporation, the country’s largest conglomerate, will be issuing a total of 12 million preferred “Class A “shares for P500 each. Proceeds from the issue will be used to fund the company’s investments in business process outsourcing (BPO) and overseas real estate projects.
Unlike owners of common shares, preferred stockholders do not have voting rights but are the first to get paid in case a company is liquidated.
Ayala Corp (Stock Code: AC)’s Preferred Shares will pay a fixed dividend rate of 8.88% per annum. Minimum subscription is 100 shares and succeeding placements must be in multiples of 20 shares.
Low-risk investment: Manila Water’s 8.25% fixed rate bonds
October 13, 2008
If you missed the Retail Treasury Bond offering of the Philippine government back in July this year which offered 8.5% and 9.0% interest per annum, you currently have a chance to earn a similar amount of return at the same low level of risk through Manila Water’s 8.25% fixed rate bonds.
The Php 3 billion corporate bond issue pays a fixed coupon rate of 8.25% per annum. The interest are paid quarterly or every 3 months. The bonds mature in October 2013 but investors can redeem their investments by as early as October 2011.
Metrobank’s Long-Term Negotiable Certificates of Deposits (LTNCD)
September 1, 2008
The Philippines’ largest bank, Metropolitan Bank and Trust Co. (Metrobank), is expected to offer to the public more than P10 billion worth of high-yield time deposit products after the Bangko Sentral ng Pilipinas (BSP) appoved last week the bank’s planned offering of long-term negotiable certificates of deposits (LTNCD).
What are LTNCDs?
Long-term negotiable certificates of deposits (LTNCDs) are peso-denominated negotiable certificates of deposites that usually mature after five years.
DBP’s 7.75% Tier 2 notes
September 1, 2008
The Development Bank of the Philippines (DBP) recently issued P6.5 billion worth of unsecured and subordinated tier 2 notes with a 7.75% coupon rate.
The notes mature in 10 years but have a step-up rate on its fifth year. This means DBP can redeem the notes on the fifth year or else it will have to increase the coupon rate.
Proceeds of the debt issuance will provide working capital to the bank and also increase its capital adequacy ratios.
What is a tier 2 note?
