PNB raises P6.3 B from LTNCD

Tan-controlled Philippine National Bank (PNB) raised P6.35 billion from the issuance of long-term negotiable certificates of time deposits (LTNCDs), more than double the issue size of P3 billion.

The LTNCDs due April 2023 with an interest rate of 3.875 percent per annum were listed at the Philippine Dealing and Exchange Corp. (PDEx) yesterday.

Nelson Reyes, executive vice president at PNB, said the fund raising activity enabled the bank to raise longterm and cost effective funding and at the same time provide funds for suitable investment requirements.

“PNB is determined to continue sustained path to stronger sustainable growth, taking advantage of available market opportunities with our expanding economy while addressing the financial needs of our cus- tomer base,” he said.

LTNCDs offer higher interest rates but could not be pre-terminated like regular time deposits.

Proceeds for the fund raising activity would be used to extend the maturity profile of the bank’s liabilities as part of overall liability management and to raise long-term funds for general corporate purposes.

In December 2014, PNB also issued P7 billion worth of LTNCDs due 2022.

This brought the amount of LTNCDs issued by PNB to P22.495 billion over the past three years.

PNB’s total consolidated resources went up 16 percent to P824 billion in end-June. It has 685 branches and 1,143 ATMs nationwide and boasts of having the most extensive international footprint with 70 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East, and North America.