Philippine National Bank floats talk of 6¼%-6½% for PHP 3 billion of CDs

By Jennifer Chiou

New York, March 12 - Philippine National Bank plans to issue PHP 3 billion of long-term negotiable certificates of deposit with an interest rate of 6¼% to 6½%.

The offer period will run until March 20.

The CDs will have a tenor of at least five years and will be issued at par.

The bank previously received approval from Bangko Sentral ng Pilipinas, the Philippines' central bank, to issue up to PHP 5 billion of the CDs, according to a Feb. 27 letter from the bank to the Philippine Stock Exchange.

The bank said it may increase the issue size up to the maximum PHP 5 billion depending on prevailing market conditions.

As already reported, the main purpose of the issuance is to expand the bank's long-term deposit base.

Deutsche Bank AG, Manila Branch is the arranger and selling agent.

The Pasay City, Philippines-based commercial and retail bank announced plans for the CDs on Jan. 20.

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