2004 - Asianbanks.net

GroupParent Company2004 2003 2004 2003(In Thousands)Cash P=7,369,125 P=7,221,979 P=7,285,405 P=7,124,666Due from BSP 2,007,833 5,286,693 1,751,379 5,129,645IBODI 14,318,939 12,287,492 14,200,310 12,205,795P=23,695,897 P=24,796,164 P=23,237,094 P=24,460,10612. Bills PayableThis account consists of borrowings from:GroupParent Company2004 2003 2004 2003(In Thousands)Foreign banks P=15,843,383 P=16,964,029 P=15,843,383 P=22,177,285BSP 1,810,298 1,292,738 1,604,861 1,042,832Local banks 1,189,740 1,876,560 – –Others 5,156,435 9,426,469 4,976,219 4,152,661P=23,999,856 P=29,559,796 P=22,424,463 P=27,372,778Interbank borrowings with foreign and local banks are mainly short-term borrowings. Peso borrowingare subject to annual fixed interest rates ranging from 1.1% to 3.2% in 2004 and from 1.2% to 2.6% in 2003; forforeign denominated borrowings, annual fixed interest rates range from 5.2% to 7.9% in 2004 and from 4.2% to6.4% in 2003.Bills payable - BSP mainly represent term borrowings availed through normal open markettransactions with the BSP. These are collateralized by eligible receivables from customers. Bills payable -others mainly represent funds obtained from DBP, LBP and SSS, which the Parent Company relends toborrowers availing of certain financing programs of these institutions (Note 4).13. Subordinated DebtOn October 15, 2002, the Parent Company’s BOD approved the raising of Lower Tier 2 capital through the issuancein the international capital market of subordinated bonds maturing in 10 years but with a call option exercisable after5 years subject to the provisions of BSP Circular No. 280. The bonds bear a coupon rate of 9.4% per annum withprovision for step-up after 5 years.The issuance of the foregoing subordinated bonds under the terms approved by the BOD was approved by the BSPunder MB Resolution No. 1660 dated November 12, 2002, as amended by MB Resolution No. 753 dated May 29,2003.Relative to this, on May 16, 2003 and June 5, 2003, the Parent Company issued US$130 million and US$70 million,respectively, 9.4% Subordinated Notes due 2013 (the Notes). Among the significant terms and conditions of theissuance of the Notes are:1. Issue price at 98.7% and 101.5% of their principal amount;2. The Notes bear interest at the rate of 9.4% per annum from and including May 23, 2003 to but excluding July 1,2008. Unless the call option is exercised, the interest rate from and including July 1, 2008 to but excluding July1, 2013 will be reset at the U.S. Treasury rate plus 10.8% per annum. Interest will be payable semi-annually inarrears on January 1 and July 1 of each year, commencing July 1, 2003;3. The Notes will constitute direct, unconditional, unsecured and subordinated obligations of the Parent Companyand will at all times rank pari passu and without any preference among themselves but in priority to the rights- 65-