Tycoon Lucio Tan-led Philippine National Bank (PNB) is getting a fresh liquidity boost of at least P2 billion from a new offering of high-yielding deposit notes.
In a disclosure to the Philippine Stock Exchange on Friday, PNB said this new tranche of long-term negotiable certificates of deposit (LTNCDs) was meant to extend the maturity profile of its liabilities.
Indicative interest rate for the LTNCDs is between 4.25 percent and 4.375 percent per annum for a 5.5-year tenor. The final rate will be determined during the offer period, which started on Sept. 27 and will end Oct. 4.
The new funding exercise was meant to be “part of overall liability management, to support compliance with required BSP (Bangko Sentral ng Pilipinas) liquidity ratios, and to raise long-term funds for general corporate purposes,” the disclosure added.
This offering is part of the BSP approval obtained by PNB in October 2018 to offer up to P20 billion of LTNCDs.
The last time PNB tapped the retail market for LTNCDs was in February this year, when it raised P8.22 billion.
The LTNCDs will be insured with the Philippine Deposit Insurance Corp. for up to the maximum insurance coverage.
Upon issuance, the LTNCDs will be listed for trading through the facilities of the Philippine Dealing and Exchange Corp.
HSBC is the sole lead arranger for the issuance while the selling agents are PNB, HSBC, First Metro Investment Corp. and Multinational Investment Bancorporation.
PNB and the sole lead arranger reserve the right to adjust the offer period and issue date. —DORIS DUMLAO-ABADILLA