Market gobbles up PNB P5-billion LTNCDs


Listed Philippine National Bank immediately raised P5 billion through a public offering of Long Term Negotiable Certificates of Time Deposits (LTNCDs) the same day it announced the start of the offer period, on Thursday.

A disclosure to the Philippine Stock Exchange showed that PNB was able to raise the intended amount on Thursday morning. The public offer period was supposed to run for three days, from July 25 to 29.

The public offering thus become one of the fastest offerings to achieve its target in the Philippine capital market.

The 5.5-year deposit was also priced at 3 percent, the lowest ever coupon for an LTNCD instrument.

“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,” said Omar Mier, PNB president and chief executive officer (CEO).

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

HSBC Philippines President and CEO Wick Veloso commented that raising P5 billion just a few hours into its offering day, and pricing the LTNCD at the lower end of the pricing guidance is a testament to the bank’s franchise.

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


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