PNB closes LTNCD offer, raises P5B as planned

Philippine National Bank (PNB) has closed a public offering of Long Term Negotiable Certificates of Time Deposits (LTNCDs) after raising P5 billion as planned.

In a statement, the bank said, "PNB was able to raise its intended volume in the morning of July 25, 2013, the same day it announced the start of the offer period."
 
With an oversubscribed book early in its offering, the 5.5 year deposit was priced at 3.00 percent, the "lowest ever coupon for an LTNCD instrument," PNB said.

The public offer period was supposed to run from July 25 to 29, but was closed the same morning as its launch due to strong demand.
 
LTNCDs are negotiable certificates of time deposit with a designated maturity or tenor representing a bank’s obligation to pay the face value upon maturity as well as make periodic coupon or interest payments during the life of the deposit.

“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,” PNB president and CEO Omar Mier said in a statement.
 
HSBC Philippines president and CEO Wick Veloso commented, “Raising P5 billion just a few hours into its first offering day, and pricing the LTNCD at the lower end of pricing guidance, is a testament to PNB’s franchise. We congratulate them on this remarkable achievement.”  
   
Earlier Thursday, PNB said it was raising money for expansion plans and long-term financing needs.

Last February, PNB merged with Allied Banking Corporation, making PNB the fourth largest privately-owned bank in the Philippines in terms of total assets.  
 
HSBC acted as sole lead arranger and bookrunner for the transaction. — Siegfrid O. Alegado/BM, GMA News