September 27, 2019 – Philippine National Bank (“PNB” or the “Bank”) is set to offer a second tranche of Long-Term Negotiable Certificates of Time Deposit Due 2025 (“LTNCDs”) under the authority to issue up to PhP 20.0 billion of LTNCDs granted by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) in October 2018. The Bank raised PhP 8.22 billion worth of LTNCDs last February 27, 2019.

PNB is offering the LTNCDs to extend the maturity profile of the Bank’s liabilities as part of overall liability management, to support compliance with required BSP liquidity ratios, and to raise longterm funds for general corporate purposes. The LTNCDs shall be insured with the Philippine Deposit Insurance Corporation (PDIC) for up to the maximum insurance coverage and subject to PDIC’s applicable rules and regulations. Upon issuance, the LTNCDs will be listed for trading through the facilities of the Philippine Dealing and Exchange Corporation.

The salient features of PNB’s Tranche 2 LTNCD offering are as follows:

      Issue Size    PhP 2.0 billion, with option to upsize
      Indicative Interest Rate    4.250% – 4.375% with final rate to be determined during the offer period
      Interest Payment    Quarterly
      Offer Period1    September 27 – October 4, 2019
      Issue Date1    October 11, 2019
      Tenor    5.5 years

1 PNB and the Sole Lead Arranger reserve the right to adjust the Offer Period and Issue Date

The Hongkong and Shanghai Banking Corporation Limited is the Sole Lead Arranger for the issuance. The Selling Agents for the offering are PNB, HSBC, First Metro Investment Corporation and Multinational Investment Bancorporation.