Lucio Tan-led Philippine National Bank (PNB) anticipated selling more or less P3 billion worth of long-term negotiable certificates of time deposit (LTNCDs) on Monday, but actually attracted investments aggregating P5.38 billion, instead.
This was learned from senior bank officials on Tuesday, as the instruments listed and began trading at the Philippine Stock Exchange. This initial batch represents the first tranche of a P20-billion offering designed to help it manage its liabilities and underwrite its operations.
At the listing ceremony, PNB President and CEO Reynaldo A. Maclang said the LTNCDs was met with “confidence from the investing public” resulting to the issue size of P5.38 billion compared to the initial offering of P3 billion.
“We were able to close the books with commitments from both retail and institutional accounts subscribed and purchased at the interest rate of 3.25 per annum with the tenor of five and a half years,” the chief executive said.
The LTNCDs represent the first tranche of an aggregate P20 billion LTNCDs approved by the Bangko Sentral ng Pilipinas last July. PNB previously said the proceeds will be used to lengthen the maturity profile of PNB’s liabilities as a part of overall liability management and to be able to raise long-term funds for corporate purposes.
“To fund the asset growth of the bank, we increased the duration of its liabilities as we respond to the various types of lending activities that are demanded in the financial markets,” Maclang said.