PNB Closes LTNCD Offering in Record Time

Philippine National Bank (PNB) successfully raised PHP5 billion through a public offering of Long Term Negotiable Certificates of Time Deposits (LTNCDs). PNB was able to raise its intended volume in the morning of July 25, 2013, the same day it announced the start of the offer period. The public offering was one of the fastest offerings to achieve its target in the Philippine capital market.

With an oversubscribed book early in its offering, the 5.5 year deposit was priced at 3.00%, the lowest ever coupon for an LTNCD instrument. The public offer period was supposed to run for three days, from July 25-29, but was closed the same morning as its launch due to strong demand.

“We are overwhelmed by the confidence and support of our investors in PNB. This fundraising exercise will allow us to support our asset growth, and make us even more competitive in the banking industry.” PNB President and CEO Omar Mier said in a statement.

HSBC Philippines President and CEO Wick Veloso, commented “Raising PHP5 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.”

PNB merged with Allied Banking Corporation earlier this year, making PNB the fourth largest privately-owned bank in the Philippines, in terms of total assets.

HSBC acted as sole lead arranger and bookrunner for the transaction.