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Central Luzon-based GM Bank raising P75M to boost capital, expand network PDF Print E-mail
Monday, 12 January 2009 23:49

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GM Bank Inc., a rural bank based in Cabanatuan, is seeking to raise fresh capital of up to P75 million through the issuance of Tier 2 notes as it plans to lend more and put up five new branches this year.

The notes offering is ongoing and has attracted Country Bankers Life Insurance Corp. and Manila Bankers Life Insurance Co., GM Bank president and chief executive Tomas Gomez IV said on Monday.

“We should be able to raise the full amount of P75 million within the first quarter. Total subscription as of today is about P60 million,” Gomez said in a phone interview.

GM Bank, which has 27 branches in Nueva Ecija, Tarlac, Bulacan, Pampanga and Pangasinan, will seek authority from the Bangko Sentral ng Pilipinas to put up five more branches this year.

“We are looking to expand our loan portfolio, which at present is now a little over P1 billion,”
Gomez said.

Gomez said the additional capital to be raised will bring GM Bank’s capital adequacy ratio to 15
percent from the current level of 14 percent, which is well above the minimum requirement of 10 percent.

Gomez, who is also the current president of the Rural Bankers Association of the Philippines,
said the entry of the two insurance firms is in line with GM Bank’s goal of diversifying its
investor base. However,he declined to disclose the size of investments made by the insurers
last month, citing confidentiality agreement.

Individual investors took up the bulk of the notes via private placement, he said.

The insurance companies’ investments are a milestone and represent growing institutional
interest in the investment attractiveness of the rural banking sector,” he said E. de la Cruz

 

Source: BusinessMirror

Last Updated on Friday, 06 February 2009 09:02
 
Globe Business gains new partners in rural banks and MFIs PDF Print E-mail
Thursday, 28 August 2008 07:21

IN A bid to help small and medium enterprises, Globe Telecom recently partnered
with three of the biggest microfinancing institutions (MFIs) in the country for
the launching of the Enhanced Micro Text Facility that will give small and medium
enterprises (SMEs) easy access to loan information needed to help their business
grow.

Globe, together with GM Bank from North Luzon, Taytay sa Kauswagan Inc. (TSKI) from
the Visayas and Green Bank of Caraga from Mindanao, launched the Enhanced Micro
Text Facility that will enable SMEs to easily and instantly reach these lending
institutions via text. The three MFIs were the first rural banks to avail themselves
of the enhanced microtext service.

According to Tomas Gomez IV, president of GM Bank and current president of the Rural
Bankers Association of the Philippines (RBAP), the enhanced microtext facility
answers the needs of rural banks, allowing them to greatly extend their service
capability and reach out to their clients.

“This service effectively gives our customers access to relevant bank information
like loans, balances, among others, through their cell phones so that even after
banking hours or weekends, and even in the middle of the night, our existing and
prospective customers can access relevant information about our banks and its product
portfolio at the speed of text,” Gomez said.

This was confirmed by Maridol Ylanan of Globe Business, who acknowledged the service
as a facility convenient and hassle-free for rural banks and its clients. It will
allow financial transactions using mobile phones.

“Aside from providing easy access to bank information, the service is also
cost-effective for SMEs as this allows them to cut down on expenses, like
transportation and fuel costs, with fewer trips to the banks,” Ylanan added.

With this service, Globe clients such as GM Bank, TSKI and Green Bank of Caraga can
now offer a text-based service to its customers. They have the privilege of receiving
a directory/list of the MFI branches and their contact numbers, as well as information
on their loan programs, eligibility, documentary requirements, procedures and payment
facilities. This facility also allows clients to inquire on their loan balances and be
reminded when their next payment is due.

To receive a list of services, entrepreneurs can send the following keywords to 2973:
for GM Bank, type MICROGM HELP; for TSKI, type MICROTSKI HELP; and for Green Bank of
Caraga, type MICROGBI HELP. A text message costs P2.50. This service is for Globe and
TM subscribers only.

 

 Source: www.businessmirror.com

Last Updated on Wednesday, 14 January 2009 09:32
 
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