China Banking Corp. said Wednesday it raised P5 billion from its recent offering of long-term negotiable certificates of time deposit (LTNCDs) that it said was oversubscribed.

The debt papers bear an indicative rate of 8.25 percent per annum, payable at the end of each three-month period.

The bank said it would use the funds raised from the issue to expand its asset base.

Because of strong investor response to the offer, China Bank said it had to upsize the issue amount from P3 billion to P5 billion, the maximum amount approved by the central bank.

It also said that the offer period, which started on July 28, was supposed to run until August 8 but was cut short since the issue was already oversubscribed by July 29.

"The success of our maiden issue is very encouraging. We did not foresee that the issue will be oversubscribed by day two, prompting us to offer P2 billion more," said Antonio Espedido Jr., China Bank's senior vice president and head of treasury.

Espedido noted that the issue was especially attractive to individual investors, who can get the interest coupon tax-free if they hold the LTNCDs to maturity. Government securities are usually subject to the 20-percent withholding tax.

Deutsche Bank AG, Manila Branch and ING Bank N. V., Manila Branch were the joint lead arrangers and selling agents of the offer.