PNB to raise P3 B from LTNCD

MANILA, Philippines -  Listed Philippine National Bank (PNB) is set to raise at least P3 billion from the second tranche of its long-term negotiable certificates of time deposit (LTNCD) issuance.

PNB informed the Philippine Stock Exchange the issue size has an option to upsize depending on the demand as the offer period started in April 6 until April 27.

The LTNCDs due October 2022 has an indicative interest rate of 3.75 percent per annum but the final rate would be determined during the offer period. LTNCDs offer higher interest rates but could not be pre-terminated like regular time deposits.

The Hongkong and Shanghai Banking Corp. Ltd. and ING Bank N.V., Manila Branch are the joint lead arrangers and bookrunners for the issuance. The selling agents for the offering are PNB, HSBC, ING and Multinational Investment Bancorporation.

Last December PNB raised P5.38 billion after it issued the first tranche of LTNCDs with an interest rate of 3.25 percent per annum and a tenor of 5.5 years.

The Bangko Sentral ng Pilipinas gave PNB the authority to issue LTNCDs in the aggregate amount of up to P20 billion last Nov. 28.

Proceeds for the fund raising activity would be used to extend the maturity profile of the bank’s liabilities as part of overall liability management and to raise long-term funds for general corporate purposes.

Earnings of PNB grew 14 percent to P7.2 billion last year from P6.3 billion in 2015 on the back of the robust performance of its core businesses.