PNB to Raise Up to Php 5 Billion in LTNCDs

Philippine National Bank (PNB) intends to raise as much as PHP 5 billion worth of long-term negotiable certificates of time deposit (LTNCDs) as part of its efforts to support the Bank’s business expansion plans, and shore up its source of longer term funding.

LTNCDs 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. These deposits are covered with deposit insurance with the Philippine Deposit Insurance Corporation up to a maximum of Php 500,000 per depositor.

PNB’s LTNCDs will have a maturity of five and a half years. The indicative pricing will be within the 3%-3.25% range, and finalized by the end of the offer period of July 25 to 29. At its discretion, the offer period may be closed earlier.

Interest is paid quarterly, and is tax-exempt for qualified individuals if held for at least 5 years. The minimum denomination of the LTNCD is Php 500,000 with increments of Php 100,000 thereafter.

The Hongkong and Shanghai Banking Corporation Limited (HSBC) is the sole lead arranger and bookrunner, and is also a selling agent together with PNB, First Metro Investment Corporation (FMIC), and Multinational Investment Bancorporation (MIB).

PNB is one of the largest banks in the country, boasting a wide array of competitive and innovative banking products. Through its subsidiaries, the Bank engages in businesses like remittances, investment banking, non-life insurance, stock brokerage, leasing and financing, and foreign exchange trading.

As a leader in the overseas remittance business, PNB maintains its position as a major market player and leader with remittance centers in countries like the United States, Canada, United Kingdom, France, Italy, Hongkong, Japan, Singapore and the Middle East. This year, and for a second year in a row, the Bangko Sentral ng Pilipinas (BSP) awarded Philippine National Bank as the Top Commercial Bank in Generating Remittances from Overseas Filipinos. The award was given last July 16, 2013 during the BSP Stakeholder’s Awards. PNB also received recognition as one of the Hall of Fame Awardees as Best Commercial Bank Respondent on Overseas Filipino Remittances for four straight years.

PNB merged with Allied Banking Corp. via a share swap deal last February 9, 2013. With PNB as the surviving entity, the merger created a bigger bank with increased branch network and a more diversified client base.