PNB firms up P5-B LTNCD issue

MANILA, Philippines - Philippine National Bank (PNB) has firmed up plans to issue P5 billion worth of long-term negotiable certificates of time deposit (LTNCDs) to support its business expansion plans and shore up its source of longer term funding.

PNB said the LTNCDs will have a maturity of five and a half years. The indicative pricing will be within the 3-3.25 percent range, and finalized by the end of the offer period on July 25 to 29. At the bank’s discretion, the offer period may be closed earlier.

LTNCDs are negotiable certificates of time deposit with a designated maturity or tenor representing a bank’s obligation to pay the face value upon maturity as well as make periodic coupon or interest payments during the life of the deposit.

These deposits are covered with deposit insurance with the Philippine Deposit Insurance Corp. up to a maximum of  P500,000 per depositor.

Interest is paid quarterly, and is tax-exempt for qualified individuals if held for at least five years.

The minimum denomination of the LTNCD is P500,000 with increments of  P100,000 thereafter.

The Hongkong and Shanghai Banking Corp. Ltd (HSBC) is the sole lead arranger and bookrunner, and is also a selling agent together with PNB, First Metro Investment Corp. (FMIC), and Multinational Investment Bancorporation (MIB).

PNB is one of the largest banks in the country, boasting a wide array of competitive and innovative banking products. Through its subsidiaries, the bank engages in businesses like remittances, investment banking, non-life insurance, stock brokerage, leasing and financing, and foreign exchange trading.

As a leader in the overseas remittance business, PNB maintains its position as a major market player and leader with remittance centers in countries like the United States, Canada, United Kingdom, France, Italy, Hong Kong, Japan, Singapore and the Middle East.

As this developed, PNB has been awarded by the Bangko Sentral ng Pilipinas (BSP) as the Top Commercial Bank in Generating Remittances from Overseas Filipinos for two years in a row.

The award was given last July 16 during the BSP Stakeholder’s Awards. PNB also received recognition as one of the Hall of Fame Awardees as Best Commercial Bank Respondent on Overseas Filipino Remittances for four straight years.

PNB merged with Allied Banking Corp. via a share swap deal last Feb. 9. With PNB as the surviving entity, the merger created a bigger bank with increased branch network and a more diversified client base.