Lucio Tan-led PNB starts P5-B LTNCD offering

Listed Philippine National Bank (PNB) on Wednesday offered long-term negotiable certificates of time deposits (LTNCD) to bankroll expansion plans, the sole arranger of the transaction said. 

 

In a statement, HSBC Philippines said the Lucio Tan-led bank "intends to raise another tranche of LTNCDs this month... The proceeds from the issuance will continue to support PNB’s business expansion plans, and shore up its source of longer term funding," HSBC noted.

 

Jessica Blas, HSBC Philippines Vice President for Media Relations, said Bangko Sentral ng Pilipinas approved the PNB plan to issue as much as P5-billion LTNCDs on Sept. 26.

 

"The P5-billion approval can be raised in one or more tranches," she said in a text message to GMA News Online. 

 

The planned offering is PNB's second this year after the P5 billion LTNCDs offered last August. 

 

According to HSBC, the LTNCDs are priced at 3.00 percent to 3.25 percent and will mature in five and a half years.

The offering runs until Oct. 16. 

 

"It can be amended accordingly by PNB or HSBC," Blas said. 

 

The interest yield is paid quarterly, and is tax-exempt for qualified individuals if held for at least five years.

 

The LTNCDs are issued in P500,000 certificates and increases of P100,000 after the minimum 

denomination. 

 

HSBC is the sole bookrunner and selling agent for the PNB on this transaction. – VS, GMA News