PNB gets BSP green light for P20-B LTNCD issue
PHILIPPINE National Bank (PNB) yesterday secured the central bank’s approval for its issuance of P20 billion worth of long-term negotiable certificates of deposits (LTNCDs).
“[P]lease be advised that we received today, 28 November 2016, a copy of the Bangko Sentral ng Pilipinas ( BSP) approval of the bank’s request for authority to issue [LTNCDs] in the aggregate amount of up to P20 billion,” the listed bank said in a brief filing with the local bourse on Monday.
PNB’s board of directors approved last July 22 the bank’s plan to raise up to P20 billion through LTNCDs as part of its liability management exercise and to finance the bank’s operations.
“The proceeds will be used to extend the maturity profile of the bank’s liabilities as part of overall liability management and raise long-term funds for general corporate purposes,” PNB said in its previous disclosure.
LTNCDs, like the regular time deposits, offer higher interest rates. Unlike time deposits, however, LTNCDs cannot be pre-terminated. They are called “negotiable” because they can be sold at the secondary market.
The listed bank offered the first tranche or P3 billion of its planned P20- billion worth of debt notes last Nov. 14 to Nov. 25 with a tenor of 5.5 years and a coupon rate of 3.25% annually.
Banking giant Hongkong and Shanghai Banking Corp. Ltd. and ING Bank N.V. Manila branch served as joint lead arrangers and bookrunners for the issuance, while PNB, First Metro Investment Corp. and the Multinational Investment Bancorporation will stand as selling agents.
The bank booked P5.7 billion in net income at end- September, up 21% from the P4.7 billion logged the previous year, primarily driven by double-digit growth in non-interest income.
Shares in PNB closed unchanged at P55.20 apiece on Monday.