PNB to raise P3B from notes issue

Tycoon Lucio Tan-led Philippine National Bank (PNB) expects to raise at least P3 billion from its offering of high-yielding deposit notes maturing in five years and six months.

PNB has offered a second tranche of long-term negotiable certificates of time deposits (LTNCDs) due Oct. 2022.

This offering is part of its P20-billion LTNCD program approved by the Bangko Sentral ng Pilipinas last year.

LTNCDs are time deposits that have a maturity of at least five years.

The LTNCDs will be insured with the Philippine Deposit Insurance Corporation (PDIC) for up to the maximum insurance coverage and subject to PDIC’s rules and regulations.

Upon issuance, the LTNCDs will be listed for trading through the facilities of the Philippine Dealing and Exchange Corp.

For this offering, PNB is offering an interest rate of 3.75 percent a year. The offering started last April 6 and will end on April 20.

The LTNCDs will be issued on April 27 this year. Minimum investment is P500,000 with multiples of P50,000 thereafter.

HSBC and ING Bank N.V., Manila Branch are the joint lead arrangers and bookrunners for the issuance.

The selling agents for the offering are PNB, HSBC, ING and Multinational Investment Bancorporation.

In December 2016, PNB issued the first tranche of LTNCDs amounting to P5.38 billion with an interest rate of 3.25 percent and a tenor of 5.5 years. —DORIS DUMLAO-ABADILLA