By Marisa Wong
Madison, Wis., Oct. 18 - Philippine National Bank (PNB) notified the Philippine Stock Exchange, Inc. that it completed its offer of long-term negotiable certificates of time deposit, raising PHP 4 billion.
The 5.5-year negotiable CDs have a coupon of 3¼%. The coupon was set at the end of the offer period, which ran from Oct. 9 to Oct. 16.
The issue date will be Oct. 21.
HSBC acted as lead arranger and bookrunner and a selling agent along with First Metro Investment Corp. and Multinational Investment Bancorp. Deutsche Bank AG, Manila Branch was the registry and paying agent.
Proceeds will be used to support the bank's business expansion plans and to shore up its source of longer-term funding.
The bank's president and chief executive officer Omar Mier said in a press release, "We did not expect such an overwhelming demand for our LTNCDs during our first issuance, which carried the lowest ever coupon rate of its kind. This prompted us to issue a second tranche of LTNCDs, which has proven equally successful. The robust appetite for PNB's issuances shows our growing competitiveness in the local market."
The Pasay City, Philippines-based commercial and retail bank previously issued PHP 5 billion of 3% negotiable CDs with a term of 5½ years. The deal priced on July 25 and settled on Aug. 5.
"It is not often that we see a bank such as PNB offer two LTNCD tranches in one year. The fact that both issuances were executed successfully is a testament to the growth of PNB and the support given to them by customers and investors," added HSBC Philippines president and CEO Wick Veloso.
| Issuer: | Philippine National Bank
|
| Issue: | Long-term negotiable CDs
|
| Amount: | PHP 4 billion
|
| Maturity: | 5.5 years
|
| Coupon: | 3¼%
|
| Bookrunner: | HSBC
|
| Offer period: | Oct. 9 to Oct. 16
|
| Settlement date: | Oct. 21
|
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