PNB launches high-yield long term deposits
Lucio Tan FILE PHOTO
MANILA, Philippines—Tycoon Lucio Tan’s banking arm Philippine National Bank started on Thursday the offering of high-yielding long-term deposits worth as much as P5 billion.
The long-term negotiable certificates of deposits (LTNCDs), which will be priced at between 3 and 3.25 percent for a maturity of five and a half years, is available for sale to the public from July 25 to 29. At the bank’s discretion, the offer period may be closed earlier than July 29.
In a press statement on Thursday, PNB said this offering was part of efforts “to support the bank’s business expansion plans, and shore up its source of longer term funding.”
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 additional investments of P100,000 thereafter.
PNB has mandated the Hong Kong and Shanghai Banking Corp. Ltd. as the sole lead arranger and bookrunner and is also a selling agent together with PNB, First Metro Investment Corp., and Multinational Investment Bancorporation.
The bank merged with Allied Banking Corp., which is likewise controlled by the Lucio Tan group, via a share swap deal last February 9 with PNB as the surviving entity.
