PHILIPPINE National Bank will raise P20 billion in fresh bonds through a second offer of long-term negotiable certificates due in 2025, the lender said in a statement to the stock exchange on Friday.

In a filing, the Lucio C. Tan-owned bank said the notes will carry an indicative interest rate of 4.25% to 4.375%, with the final rate to be determined during the offer period.

The notes will extend the maturity profile of the bank’s liabilities as part of its overall liability management to support compliance with required central bank liquidity ratios. Proceeds of the notes will also be used for general corporate purposes, the bank said.

The notes offer higher interest rates similar to regular time deposits. But these can’t be pre-terminated but can be sold in the secondary market, making them negotiable.

The lender said the notes will be insured with the Philippine Deposit Insurance Corp. “for up to the maximum insurance coverage and subject to PDIC’s applicable rules and regulations.”

PNB will issue the notes on Oct. 11, with Hong Kong and Shanghai Banking Corp. acting as the sole lead arranger. The selling agents include PNB, HSBC, First Metro Investment Corp. and Multinational Investment Bancorporation. — Luz Wendy T. Noble

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