Business - Land Bank to issue $200M in bonds - INQUIRER.net
Land Bank to issue $200M in bonds
InquirerLast updated 05:05am (Mla time) 08/16/2007
Government-owned Land Bank of the Philippines plans to raise as much as $200 million from a foreign bond issue to boost its capital.
The bank will seek regulatory approval to offer a combination of hybrid or perpetual bonds that shall qualify as tier 1 or core capital and 10-year subordinated notes to boost its tier 2 or supplementary capital.
The bank will also sell P2.5 billion in peso-denominated tier 2 notes in the domestic market.
In a news briefing Tuesday night, Land Bank president Gilda Pico said that the proceeds of the bond offer will hike its capital adequacy ratio (CAR) to as much as 23 percent from 15 percent to comply with the stiffer global capital adequacy requirements under Basel 2.
Land Bank vice president Alex Macapagal said the bank had recently invited over a dozen investment banks to submit proposals for the fundraising.
“We’d like to get the process going so that when the market is favorable, we can just go ahead and issue,” Macapagal said.
He added that Land bank would not necessarily issue the hybrid and tier 2 notes in one tranche.
Once a proposed foreign borrowing is approved by the central bank’s policy-making Monetary Board, the applicant is usually given 12 months to pursue the plan, he said.
Hybrid capital instruments have equity-like features that have made them acceptable as Tier 1 or core capital.
Meanwhile, Land Bank also plans to sell at least P3 billion worth of real and other properties acquired using the Special Purpose Vehicle framework and a series of property auctions, to complement continuing efforts to reduce its bad assets and comply with the Basel 2 standards.
About P1.4 billion worth of property assets would be bid out using the SPV mode while another P1.6 billion shall be sold through auctions to be held across the country in September and November with the help of property consultant CB Richard Ellis.
“The proceeds of these sales will be used to meet the expanding demands for loans by our priority sectors, including the small farmers and fisherfolk, small and medium enterprises and microenterprises,” Pico said. Doris C. Dumlao
Wednesday, September 12, 2007
Tuesday, September 04, 2007
Committee on the Global Financial System: mandate
As approved by the Governors of the G10 central banks on 8 February 1999
The Committee on the Global Financial System is a central bank forum for the monitoring and examination of broad issues relating to financial markets and systems with a view to elaborating appropriate policy recommendations to support the central banks in the fulfilment of their responsibilities for monetary and financial stability. In carrying out this task, the Committee will place particular emphasis on assisting the Governors in recognising, analysing and responding to threats to the stability of financial markets and the global financial system. More specifically, the Committee's primary objectives will be the following:
To seek to identify and assess potential sources of stress in the global financial environment through a regular and systematic monitoring of developments in financial markets and systems, including through an evaluation of macroeconomic developments;
To further the understanding of the functioning and underpinnings of financial markets and systems through a close monitoring of their evolution and in-depth analyses, with particular reference to the implications for central bank operations and broader responsibilities for monetary and financial stability;
To promote the development of well-functioning and stable financial markets and systems through an examination of alternative policy responses and the elaboration of corresponding policy recommendations.
In its analysis, the Committee should pay particular attention to the nexus between monetary and financial stability, to the linkages between institutions, infrastructures and markets, to the actual and potential changes in financial intermediation and to the incentive structures built into markets and systems. The Committee should seek to increase the transparency of financial markets and systems by promoting the design, production and publication of statistics and other information by central banks - including through the BIS - and by recommending the adoption of appropriate disclosure standards by both the official and private sectors. Where relevant, the Committee should also contribute to the development of an international consensus on sound principles and norms.
The Committee is encouraged to co-operate with other national, supranational and international institutions with responsibilities for pursuing related objectives. In particular, it shall co-ordinate its activities with other Basel-based committees, such as the Basel Committee on Banking Supervision and the Committee on Payment and Settlement Systems, in order to strengthen the overall effectiveness of the process.
As approved by the Governors of the G10 central banks on 8 February 1999
The Committee on the Global Financial System is a central bank forum for the monitoring and examination of broad issues relating to financial markets and systems with a view to elaborating appropriate policy recommendations to support the central banks in the fulfilment of their responsibilities for monetary and financial stability. In carrying out this task, the Committee will place particular emphasis on assisting the Governors in recognising, analysing and responding to threats to the stability of financial markets and the global financial system. More specifically, the Committee's primary objectives will be the following:
To seek to identify and assess potential sources of stress in the global financial environment through a regular and systematic monitoring of developments in financial markets and systems, including through an evaluation of macroeconomic developments;
To further the understanding of the functioning and underpinnings of financial markets and systems through a close monitoring of their evolution and in-depth analyses, with particular reference to the implications for central bank operations and broader responsibilities for monetary and financial stability;
To promote the development of well-functioning and stable financial markets and systems through an examination of alternative policy responses and the elaboration of corresponding policy recommendations.
In its analysis, the Committee should pay particular attention to the nexus between monetary and financial stability, to the linkages between institutions, infrastructures and markets, to the actual and potential changes in financial intermediation and to the incentive structures built into markets and systems. The Committee should seek to increase the transparency of financial markets and systems by promoting the design, production and publication of statistics and other information by central banks - including through the BIS - and by recommending the adoption of appropriate disclosure standards by both the official and private sectors. Where relevant, the Committee should also contribute to the development of an international consensus on sound principles and norms.
The Committee is encouraged to co-operate with other national, supranational and international institutions with responsibilities for pursuing related objectives. In particular, it shall co-ordinate its activities with other Basel-based committees, such as the Basel Committee on Banking Supervision and the Committee on Payment and Settlement Systems, in order to strengthen the overall effectiveness of the process.
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