Philippine National Bank, the sixth-largest lender in terms of assets, listed on Thursday P6.35-billion long-term negotiable certificates of time deposits due 2023 at the Philippine Dealing & Exchange Corp.
The notes have a tenor of 5.5 years and will mature on April 26, 2023. It has an interest rate of 3.875 percent, payable on Jan. 26, April 26, July 26 and Oct. 26 of each year.
The bank may, subject to the general banking laws of 2000, redeem all and not only part of the outstanding certificates of deposits on any interest payment date prior to maturity date, at an early redemption amount equal to the issue price plus interest accrued and unpaid up to but excluding the early redemption date.
PNB tapped Hongkong and Shanghai Banking Corp. and ING Bank Manila branch as joint lead arrangers and selling agents. Other selling agents are PNB itself and Multinational Investment Bancorporation.
PNB executive vice president Nelson Reyes said the latest development enabled the bank to raise long-term and cost-effective funding and provide suitable investment requirements.
“PNB is determined to continue sustained path to stronger sustainable, taking advantage of available market opportunities with our expanding economy while addressing financial needs of our customer base,” Reyes said.
The listing of PNB’s LTNCDs brought the total volume of new listings this year to P163.49332 billion. The total outstanding listed securities volume reached P756.3662 billion. This brought the number of corporate issuers with outstanding listed issues at 44.
LTNCDs are time deposits that have a maturity of at least five years. LTNCDs shall be insured with the 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 the Philippine
Dealing and Exchange Corp.
PNB posted a 38-percent decline in net income in the first half to P2.67 billion from P4.32 billion a year ago in the absence of one-off gains from the sale of foreclosed assets and lower trading and investment securities gains.
Interest income on loans and receivables went up 12.7 percent to P10.64 billion from P9.44 billion, while interest earnings on trading and investment securities fell 20.4 percent to P1.75 billion from P2.2 billion.
PNB’s loan book grew 16 percent, boosted by increases in loans to corporate, commercial and small and medium-sized enterprises.