PNB raises P4.6B in LTNCD offer

HSBC served as sole arranger and bookrunner for the transaction.

Lucio Tan-led Philippine National Bank (PNB) raised P4.6 billion from the issuance of long-term negotiable certificates of deposit (LTNCD) due 2025.

The secured amount was 2.3 times oversubscribed from the bank’s announced issue size of P2 billion, PNB told the stock exchange on Friday. The offering was a drawdown from the bank’s P20 billion program approved by the Bangko Sentral ng Pilipinas in October 2018.

Listing commenced at the Philippine Dealing & Exchange Corp. on 11 October following the offer period on 27 September until 4 October.

In a prior disclosure, PNB said the certificates carry an indicative interest rate of 4.250 percent to 4.375 percent and will pe paid quarterly.

PNB launched the LTNCD offering to extend its liabilities’ maturity profile, comply with the central bank’s required liquidity ratios and raise long-term funds for general corporate purposes.

“This second tranche puts our total LTNCD issuance for the year to P12.82 billion. It brings the aggregate new PDEx listings for the year to P26.70 billion,” PNB president and chief executive officer Wick A. Veloso was quoted as saying.

In February this year, PNB raised P8.22 billion from the first tranche of the LTNCD program. The certificates will also mature in 5.5 years and has an interest rate of 5.75 percent to be paid quarterly until 2024.

HSBC served as sole arranger and bookrunner for the transaction. It was also the selling agent for the offering together with PNB, First Metro Investment Corp. and Multinational Investment Bancorporation.

The lender’s net earnings declined 27.7 percent in the first half of 2019, to P3.9 billion from P5.4 billion in the same period last year, owing to the lack of non-recurring income present last year from the sale of foreclosed assets.