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.

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