MANILA, Philippines – Tycoon Lucio Tan’s banking arm Philippine National Bank (PNB) is raising as much as P5 billion from the issuance of long-term negotiable certificates of time deposit (LTNCDs).
In a disclosure to the Philippine Stock Exchange on Thursday, June 25, PNB said the fresh capital would serve as a source of longer term funding, and would be used to finance its expansion.
LTNCDs are offered to investors looking for a safe investment with a higher interest rate and longer maturity than a regular time deposit account. LTNCDs usually have maturity of 5 years or longer.
PNB’s LTNCDs will mature in 5 and a half years. Indicative interest was set at a range of 3%-3.25%. This will be finalized by the end of the July 25-29 offer period.
In its disclosure, PNB said the interest would paid quarterly.
Investors may buy for a minimum of P500,000 with increments of P100,000 thereafter.
PNB tapped the Hongkong and Shanghai Banking Corporation Limited as lead arranger and bookrunner as well as selling agent.
Other selling agents inlcude First Metro Investment Corporation, Multinational Investment Bancorporation and PNB. – Rappler.com
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