PNB issues P4B-worth LTNCDs, may float P1B more

Lucio Tan-led Philippine National Bank (PNB) issued P4 billion worth of Long Term Negotiable Certificates of Time Deposits (LTNCDs) during a second public offering, and may offer P1 billion more to bankroll expansion plans, the sole arranger of the transaction said.  

 

“PNB was able to raise P4 billion from the second issuance of LTNCDs,” HSBC Philippines said in a statement sent over the weekend. 

 

The 5.6-year deposit was priced at 3.25 percent, slightly higher than the 3 percent coupon in the first issuance in July. http://www.gmanetwork.com/news/story/319164/economy/moneyandbanking/pnb-closes-ltncd-offer-raises-p5b-as-planned

 

“We did not expect such an overwhelming demand for our LTNCDs during our first issuance, which carried the lowest ever coupon rate of its kind,” president and CEO Omar Mier was quoted as saying in the statement, adding that this prompted the bank to pursue a second public offering.   

 

PNB has secured central bank approval for a second offering of another P5 billion worth of LTNCDs, which can be raised in one or more tranches. 

 

“Yes, PNB may utilize the remaining P1 billion subject to market conditions,” HSBC vice president for Media Relations Jessica Blas said Monday, when asked for plans of the remaining P1 billion regulator-approved LTNCD. 

 

HSBC considered the float a feat for a Philippine bank.

 

“It is not often that we see a bank such as PNB offer two LTNCD tranches in one year,” HSBC Philippines president and CEO Wick Veloso noted in the same statement. “The fact that both issuance were executed successfully is a testament to the growth of PNB and the support given to them by customers and investors.”

 

PNB said it was raising money for expansion and long-term financing needs.

 

Its second LTNCD offering this year ran from Oct. 9 to 16, with the issued Monday. 

 

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 was the sole lead arranger for PNB's second LTNCD offering. 

 

In addition to HSBC and PNB, First Metro Investment Corporation and Multinational Investment Bancorporation were the selling agents while Deutsche Bank AG, Manila Branch was the registry and paying agent. – VS, GMA News