MANILA - To fund the expansion of its banking operations, Yuchengco-led Rizal Commercial Banking Corp. (RCBC) will raise up to $85 million (P4 billion) through the issuance of dollar-denominated negotiable certificates of time deposit (NCTDs).

RCBC will offer the debt papers to its depositors from September 22 to 25, it said in a statement.

An NCTD is a senior deposit product with maturity of 3 years. It is ideal for individuals and corporations that seek investment alternatives offering higher returns than regular time deposits.

RCBC's NCTDs, which will carry an interest rate of 3.75% per annum, will be issued in minimum denomination of $5,000 and in increments of $1,000.

The bank said the NCTDs are transferable in the secondary market via a market maker. They will also be covered by the Philippine Deposit Insurance Corp. up to the specified limits.

RCBC is a universal bank which provides a wide range of banking and other financial products and services, including commercial and retail banking, credit cards, asset management and treasury and investment banking products and services.

For the first half of the year, it posted a net income of P1.69 billion, up 11% from the P1.53 billion it recorded in the same period of 2008.