Philippine National Bank plans 5½-year negotiable CDs with 3¼% coupon

By Marisa Wong

Morgantown, W.Va., Nov. 11 – Philippine National Bank (PNB) said it intends to launch an offering of long-term negotiable certificates of time deposit on Nov. 14.

The bank said it obtained approval from the Bangko Sentral ng Pilipinas to issue up to PHP 20 billion of negotiable CDs with terms of 5½ to 10 years in multiple tranches over a period of one year.

The initial tranche will have a size of at least PHP 3 billion and a tenor of 5½ years and carry a coupon of 3¼%.

Hongkong and Shanghai Banking Corp. Ltd. and ING Bank NV, Manila Branch are the joint lead arrangers and bookrunners. PNB, First Metro Investment Corp. and Multinational Investment Bancorp. are also selling agents.

The offer period for the first tranche is expected to end on Nov. 25, with issuance slated for Dec. 6.

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

The commercial and retail bank is based in Pasay City, Philippines.

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