Sunday, November 18, 2018
  • share this

PNB to issue up to P20B in high-yield debt notes

/ 05:24 AM January 24, 2018

Tycoon Lucio Tan-led Philippine National Bank is raising as much as P20 billion from the issuance of high-yield deposit notes, harnessing ample liquidity in the local financial system for its debt management and expansion program.

PNB has obtained approval from its board to issue the long-term negotiable certificates of time deposit (LTNCTDs) in one or more tranches, subject to the approval of the Bangko Sentral ng Pilipinas (BSP).


“The proceeds will be used to extend the maturity profile of the bank’s liabilities as part of overall liability management, support compliance with required BSP liquidity ratios and raise long-term-funds for general corporate purposes,” PNB said.

LTNCTDs are negotiable certificates of time deposit issued by banks, with a minimum maturity of five years and denominated in Philippine peso. They usually have higher yields compared to regular time deposits or savings accounts.


Unlike regular time deposits, LTNCTDs cannot be preterminated by holders. However, investors can negotiate or transfer their holdings in the secondary market prior to maturity. Interest on LTNCTDs is tax-free for individual investors if the instrument is in the name of the individual holder and held for at least five years.

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: debt management and expansion program, high-yield debt notes, Lucio Tan, Philippine National Bank
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2018 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.