Life insurance firms snap up rural bank’s debt notes

In a telephone interview, GM Bank, Inc. President and Chief Executive Tomas S. Gomez IV claimed the two firms’ move comprised the first time that insurers invested in a bank’s Tier 2 debt.

GM Bank issued P75 million worth of the debt, which are subordinated to claims of depositors and senior creditors.

“At the height of sweeping negative comments about rural banks, these 40-year old companies are investing in a rural bank. This is the first investment made in a rural bank by insurance companies,” he said.

Read Full Story

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>