Security Bank, PNB set LTNCD issues
Listed Security Bank Corp. is set to tap the debt market this month for the issuance of P20 billion in long-term negotiable certificates of deposit (LTNCD).
Security Bank informed the Philippine Stock Exchange (PSE) it received last Tuesday the approval of the Bangko Sentral ng Pilipinas (BSP) for the fund raising activity.
“The issue size is up to the aggregate amount of P20 billion. For the first tranche, the offer period is targeted in October or a date to be determined depending on BSP approval and prevailing market conditions,” it said.
LTNCDs are negotiable certificates of deposit with a designated maturity, and represent a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit.
Interest income is exempt from withholding taxes if the LTNCDs are held for at least five years.
Security Bank president and CEO Alfonso Salcedo Jr. earlier said the bank is looking at a tenor of at least five to seven years for the first tranche scheduled either this month or next month.
Salcedo said Security Bank intends to raise between P5 and P10 billion in the first tranche.
Proceeds of the issuance, he said, would be used to fund the asset growth of the bank and lengthen the maturity profile of its liabilities.
Meanwhile, Tan-controlled Philippine National Bank (PNB) is raising at least P3 billion from the third tranche of its LTNCD issuance that kicked off yesterday.
PNB informed the PSE the issue size has an option to upsize depending on the demand as the offer period started yesterday until Oct. 19.
The LTNCD due April 2023 has an indicative interest rate of 3.75 to 3.875 percent per annum, but the final rate would be determined during the offer period. The issue date is on Oct. 26.
The HongKong and Shanghai Banking Corp. Ltd. and ING Bank N.V., Manila Branch are the joint lead arrangers and bookrunners while PNB, HSBC, ING and Multinational Investment Bancorp. are the selling agents. PNB Capital and Investment Corp. is the financial advisor for the offering.
Tan-controlled Philippine National Bank (PNB) is raising at least P3 billion from the third tranche of its longterm negotiable certificates of time deposit (LTNCD) issuance that kicked off yesterday.