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PNB: Launch of LTNCD

Philippine National Bank (PNB) intends to raise PHP 3 billion in long term negotiable certificates of time deposit (LTNCDs) as approved by the country's central bank. Proceeds will support business expansion and provide longer term funding to match assets. PNB's LTNCDs will have a 5.5 year maturity with indicative interest rates of 4-4.25% paid quarterly and be exempt from tax if held for 5 years. The public offer period runs from November 26 to December 5.

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51 views1 page

PNB: Launch of LTNCD

Philippine National Bank (PNB) intends to raise PHP 3 billion in long term negotiable certificates of time deposit (LTNCDs) as approved by the country's central bank. Proceeds will support business expansion and provide longer term funding to match assets. PNB's LTNCDs will have a 5.5 year maturity with indicative interest rates of 4-4.25% paid quarterly and be exempt from tax if held for 5 years. The public offer period runs from November 26 to December 5.

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BusinessWorld
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Philippine National Bank Launches LTNCD

Philippine National Bank (PNB) intends to raise at least PHP 3 Billion worth of long term negotiable
certificates of time deposit (LTNCDs) as the first tranche of its PHP 10 Billion LTNCD programme,
approved by the Monetary Board of the Bangko Sentral ng Pilipinas.
Proceeds from the offering will support business expansion plans, and provide the bank with a longer
term source of funding, which it can use to match its assets.
LTNCDs are negotiable certificates of deposit with a designated maturity or tenor, representing a banks
obligation to pay the face value upon maturity, as well as periodic coupon or interest payments during the
life of the deposit. LTNCDs are covered by deposit insurance with the Philippine Deposit Insurance Corp.
up to a maximum amount of PHP 500,000 per depositor.
PNBs LTNCDs will have a maturity of five and a half years. The indicative pricing will be within the range
of 4.00% to 4.25%, and may be finalized during the offer period.
The interest will be paid quarterly, and will be tax exempt for qualified individuals, if they are held for at
least 5 years. The minimum denomination is of PHP 500,000.00, with increments of PHP 50,000.00
thereafter.
The public offer period will run from November 26 to December 5 but may be closed earlier by PNB at
its sole discretion. The issue date will be on December 12, 2014.
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).
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PNB is one of the country's largest private local commercial banks in terms of assets and deposits. It
is a universal bank providing a full range of banking and other financial services to large corporate,
middle market, small and medium enterprises (SMEs) and retail customers. It maintains significant
account relationships as well with the Philippine Government, national government agencies, local
government units, and government owned and controlled corporations (GOCCs). PNB was originally
established as a government bank in 1916 but has been 100% privatized since 2007. PNB is a
publicly listed company with a broad shareholder base. Its major stockholder is the Lucio Tan Group,
one of the Philippines' leading business conglomerates.

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