Quantcast
Latest Stories

PNB attracts P5 B in long-term deposits in record time

By

MANILA, Philippines—Philippine National Bank completed a P5-billion offering of long-term deposits covered by negotiable certificates on the same day the product was launched on Thursday, one of the fastest fund-raising exercises seen in the local capital market to date.

The banking arm of taipan Lucio Tan announced on Friday that it had successfully raised the amount through a public offering of long term negotiable certificates of time deposits (LTNCDs) at a record-low interest rate for this instrument.

PNB reported that with an oversubscribed book early in its offering, the 5.5-year LTNCD issuance was priced at 3 percent per annum, the lowest ever coupon for such an instrument. The public offer period was supposed to run for three days, from July 25 to 29, but it was closed on the very same morning it was launched due to strong demand, the bank said in a press statement.

“We are overwhelmed by the confidence and support of our investors in PNB. This fund-raising exercise will allow us to support our asset growth, and make us even more competitive in the banking industry,” PNB president Omar Mier said.

HSBC acted as sole lead arranger and bookrunner for PNB’s offering of LTNCDs, which 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. 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.

These deposits are covered by insurance with the Philippine Deposit Insurance Corp. up to P500,000 per depositor.

“Raising P5 billion just a few hours into its first offering day, and pricing the LTNCD at the lower end of pricing guidance is a testament to PNB’s franchise. We congratulate them on this remarkable achievement,” said Wick Veloso,  HSBC Philippines president.

PNB merged with Tan’s Allied Banking Corp. earlier this year, making PNB the fourth largest privately owned bank in the Philippines, in terms of total assets.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Banking , deposit , long-term deposits , PNB

  • Beersheva

    The government should haul azz on those PPPs during this period of low financing costs. Sayang.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Luzon grid power reserve ‘enough’ for Holy Week
  • Pimentel proposes incentives for companies that will hire ex-convicts
  • State seeks guilty verdict for Abalos
  • SBMA execs, 2 others face graft raps
  • Pangasinan beachgoers warned vs jellyfish
  • Sports

  • My ideal weight is 140, declares Pacquiao
  • Freddie Roach: I’m satisfied; Manny Pacquiao did well
  • New-look Azkals tie Qatari side
  • San Miguel Beermen eye No. 2 slot, battle Air21 Express
  • Filipinos yield to Iraqis anew Asian club volley
  • Lifestyle

  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Summer treat for your aspiring astronomers
  • Entertainment

  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • 2NE1 returns to Manila with “All Or Nothing” Tour
  • Gary Valenciano just keeps moving
  • Noisy celeb spews venom, backs off when confronted
  • Business

  • Longer TRO sought on rate hike
  • Make a stylish statement with the all-new Yaris
  • Hearing set in Olarte case
  • BOC sues steel importers
  • BIR continues to miss collection target
  • Technology

  • Tech company: change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Philippines may watch ‘blood moon’ online
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • No travel restrictions to Middle East amid MERS-CoV scare
  • Measures set against entry of MERS-CoV
  • Japan backs PH in case before UN
  • Las Vegas union starts pickets over wages, benefits
  • Fil-Am Daly City councilor has eye on Superior Court seat
  • Marketplace