PNB to raise up to Php3 Billion in LTNCDs

The Philippine National Bank (SEC: PNB) began offering its third tranche of long-term negotiable certificates of time deposits (LTNCDs) worth Php3 billion, with option to upsize. The offer is part of PNB’s intention to raise as much as Php20 billion of the instruments granted by the Monetary Board of the Bangko Sentral ng Pilipinas.

LTNCDs are time deposits with a designated maturity of at least five years. These deposits are insured with the Philippine Deposit Insurance Corporation (PDIC) for up to a maximum of Php500,000 per depositor. Upon issuance, the LTNCDs will be listed for trading through the facilities of the Philippine Dealing and Exchange Corporation (PDEx).

PNB’s LTNCDs will have a maturity of five and a half years. The indicative interest rate will be within the 3.75%-3.85% per annum range, and finalized by the end of the offer period of October 11 to October 19, 2017.

The Hongkong and Shanghai Banking Corporation Limited (HSBC) and ING Bank N.V. Manila Branch are the Joint Lead Arrangers and Bookrunners, and are also Selling Agents, together with PNB and Multinational Investment Bancorporation (MIB). PNB Capital and Investment Corporation is the Financial Advisor for this offering.