Philippine National Bank (PSE: PNB) recently raised a total of PHP8.22 billion worth of Long Term Negotiable Certificates of Deposit (LTNCDs) to help extend PNB’s maturity debt profile and raise long-term funds to support its loan growth. The transaction, whose initial planned issuance was PHP3 billion, had to be upsized to meet its 2.7x oversubscription. This is due to strong investor demand from both retail and institutional investors.
To date, it is the largest LTNCD issuance by the Lucio Tan-owned bank.
The LTNCDs have a coupon rate of 5.75% per annum and a tenor of 5 years and six months.
“This is a strategic exercise for us as we continue to grow our loan portfolio. Raising long term funding at attractive levels offers our investors an opportunity to support our goals, while allowing us to also provide cost-competitive loans to our clients who would like to grow alongside our strong Philippine economy,” said President and CEO Wick Veloso.
HSBC and ING were Joint Lead Managers on the transaction, and were likewise selling agents alongside PNB, First Metro Investment Corp. (FMIC) and Multinational Investment Bancorporation. PNB Capital and Investment Corp. served as advisor.
The LTNCDs will be listed on the Philippine Dealing Exchange on February 27, 2019.