PHILIPPINE National Bank, the sixth-largest lender in terms of assets, is offering P3 billion worth of long-term negotiable certificates of time deposits to raise funds as part of its liquidity management program and to support operations.
The bank said in a statement to the stock exchange Friday the issuance was the second tranche of the planned P20-billion LTNCDs approved by the Bangko Sentral ng Pilipinas in October 2016.
“We wish to inform the Exchange that the Philippine National Bank is offering a second tranche of Long-Term Negotiable Certificates of Time Deposit due October 2022,” it said.
PNB in December 2016 issued the first tranche of LTNCDs amounting to P5.38 billion with an interest rate of 3.25 percent a year and a tenor of 5.5 years.
The offering period for the second tranche was set from April 6 to 20, 2017, with an issue date of April 27 and maturity of Oct. 27, 2022.
LTNCDs are time deposits that have a maturity of at least five years. The LTNCDs will be insured with Philippine Deposit Insurance Corp. for up to the maximum insurance coverage and subject to PDIC’s applicable rules and regulations.
Upon issuance, the LTNCDs will be listed for trading through the facilities of Philippine Dealing and Exchange Corp.
PNB tapped the Hongkong and Shanghai Banking Corp. Ltd. and ING Bank N.V., Manila branch as joint lead arrangers and bookrunners of the issue. The selling agents for the offering are PNB, HSBC, ING, and Multinational Investment Bancorporation.
PNB’s net income in 2016 rose 14 percent to P7.2 billion from P6.3 billion in 2015, driven by a steady improvement in core businesses.
Net interest income grew 11 percent to P19.6 billion, accounting for nearly two-thirds of total operating income. Net interest margin was maintained at 3.2 percent, despite the decline in asset yields. It as this was compensated by the 12-percent growth in low-cost deposits combined with the redemption of its P6.5-billion lower Tier 2 unsecured subordinated notes in June 2016.