MANILA, Philippines - The Philippine National Bank (PNB) started yesterday to offer P3 billion worth of long-term negotiable certificates of deposits (LTNCDs). The issue date has been tentatively set on Nov. 18.
“PNB reserves the right to adjust the timing and terms of the offer as needed PNB’s issuance of LTNCDs will be used to further strengthen banking operations and general corporate purposes,” the bank said in a statement.
The tentative indicative price was placed at 5.25 percent.
LTNCDs are senior obligations of PNB, with a maturity period of five years and three months from issue date. Interest will be paid quarterly and will be tax-exempt for individual investors if held for more than five years.
The issue will also be covered by the Philippine Deposit lnsurance Corp. (PDlC) and subject to applicable rules and regulations, among others, on maximum insurance coverage per depositor. It will be issued in minimum denominations of P500,000 and increments of P100,000.
Deutsche Bank AG, Manila Branch was tapped as sole arranger and selling agent. Other selling agents are Allied Banking Corp., First Metro Investment Corp., Multinational Investment Bancorporation, PNB and PNB Capital and lnvestment Corp.
Last week, Philippine Savings Bank (PSBank) said it will also issue P5 billion worth of unsecured subordinated debt with a possible term of 10 years, and a call option on the fifth year.