To support its expansion plans, the Philippine National Bank is officially issuing P5-billion worth of long-term negotiable certificates of time deposits (LTNCDs) almost a week after securing the approval of Bangko Sentral ng Pilipinas.
A disclosure to the Philippine Stock Exchange on Thursday revealed that PNB intends to raise as much as P5-billion worth of LTNCDs, as part of its efforts to fund its business expansion plans and shore up its source of longer term funding. According to PNB, its LTNCDs will have a maturity of five and a half years, and the indicative pricing will be within the 3-percent to 3.25-percent range.
The offer period for the issuance will be from July 25 to 29.
“At its discretion, the offer period may be closed earlier,” PNB specified.
“Interest is paid quarterly, and is tax-exempt for qualified individuals if held for at
least five years. The minimum denomination of the LTNCD is P500,000 with increments of P100,000 thereafter,” the bank further said.
HSBC is the sole lead arranger and bookrunner, and is also a selling agent together with PNB, First Metro Investment Corp., and Multinational Investment Bancorporation. More than a week ago, PNB announced that it received the approval of the BSP to issue the LTNCDs.