THE board of the Philippine National Bank (PNB) announced on Friday the sale of P20 billion in long-term negotiable certificates of deposits (LTNCDs), whose proceeds should help fund its long-horizon operational requirements.
The Lucio Tan-led bank stated in a regulatory filing on Friday the issuance of LTNCDs in one or more tranches is still subject to the approval of the Banko Sentral ng Pilipinas (BSP).
“The proceeds will be used to extend the maturity profile of the bank’s liabilities as part of overall liability management and raise long-term funds for general corporate purposes,” according to the lender.
In 2014 PNB sold P3 billion worth of LTNCDs, which was met by a huge volume of order. This development compelled management to expand its offer. The lender also announced a cash-dividend declaration of P1 per share, or a total of P1,249,139,678, to be taken out of the unrestricted retained earnings of the bank as of
March 31.
This will be payable on or before September 15 to all stockholders of record as of August 19 and will be subject to regulatory approvals.
In the first quarter of 2016 PNB posted a 116-percent surge in net income. Its earnings more than doubled from P1.2 billion to P2.6 billion.
PNB is the country’s fourth-largest private commercial bank in terms of assets and deposits. The bank has a total of 665 branches and 954 automated teller machines nationwide, and 75 overseas branches and offices.