PNB raises P5.38 billion from first LTNCD offer

PHILIPPINE National Bank (PNB) had raised some P5.38 billion from its first offering of its planned P20 billion worth of long-term negotiable certificates of time deposits (LTNCDs) — well above the P3-billion program for the exercise.

In the ceremonial listing of the deposit instruments on Tuesday at the Philippine Dealing System, the Lucio C. Tan-owned bank said it issued as much as P5.38 billion from the first tranche of its approved P20- billion issuance during a public offer that was conducted last Nov. 14-25.

The LTNCDs carried a 5.5-year tenor and coupon rate of 3.25% annually.

LTNCDs, like the regular time deposits, offer higher interest rates. Unlike time deposits, however, LTNCDs cannot be preterminated.

They are called “negotiable” because they can be sold at the secondary market.

“We are looking forward to tap the remaining approved LTNCD in the coming years,” PNB President Reynaldo A. Maclang said during the LTNCDs’ listing ceremony.

The bank previously said in a disclosure to the local bourse that proceeds from its LTNCD offerings “will be used to extend the maturity profile of the bank’s liabilities as part of overall liability management and raise longterm funds for general corporate purposes.”

The P20- billion issuance of the peso- denominated papers was approved by the Bangko Sentral ng Pilipinas last Nov. 28.

Banking giant Hongkong and Shanghai Banking Corp. Ltd. and ING Bank N.V. Manila branch served as joint lead arrangers and bookrunners for the first issuance, while PNB, First Metro Investment Corp. and the Multinational Investment Bancorporation acted as selling agents.

The listed bank saw its bottomline jump 21% to P5.7 billion at end- September from the P4.7 billion logged the previous year, mainly driven by doubledigit growth in its non- interest income.

PNB shares closed at P54.70 apiece yesterday, down by 90 centavos or 1.62% from Monday’s close of P55.60 each. •