Wealth

PNB Offers 2-Year Fixed Rate Bonds With 6.3% Annual Yield

The fixed-rate bonds can be purchased from the country’s fifth largest bank at a minimum price of P100,000.
IMAGE Unsplash/Wikimedia Commons
Comments

The Philippine National Bank (PNB) is inviting customers looking to diversify their investment portfolios to consider the bank's latest two-year peso fixed rate bonds offer.

The offering, worth at least P5 billion, has an annual interest rate of 6.3 percent. The PNB bonds will yield slightly higher returns at a shorter amount of time compared to the latest coupon rates published by the Bangko Sentral ng Pilipinas (BSP). BSP’s interest rate for its seven-year fixed-rate treasury bonds (the shortest tenor available) stands at 6.250 percent.

The PNB bonds are available for purchase at minimum investments of P100,000, with additional placements in increments of P50,000. The bonds will mature in 2021, and interest payments will be paid on a quarterly basis.

To purchase the bonds, interested customers should personally go to the nearest PNB and/or Standard Chartered branch, which serve as the selling agents of the offering.

PNB said online applications are not available because a strict know-your-customer (KYC) policy is implemented as part of its transaction process, which requires face-to-face interaction. Standard Chartered serves as the sole arranger and bookrunner of the offering.

ADVERTISEMENT - CONTINUE READING BELOW

The offer period started April 15, Monday, and will last until April 30, Tuesday. The bonds will be issued on May 8, Wednesday. Both the PNB and Standard Chartered reserve the right to adjust these dates, so it’s advisable to always check with the banks for the schedule.

@PNBph: Want to diversify your peso investment portfolio? Invest in the PNB Peso Fixed Rate Bonds! Ready to invest? Visit the nearest PNB branch. #PNBph #YouFirst #Investment #Treasury #Bonds

The bonds, however, will not be insured by the Philippine Deposit Insurance Corporation, unlike bank deposits. Interested investors are advised to read through the terms and conditions of the offering first before making investment decisions. To minimize risks, they are also encouraged to discuss their options with their bank officers or financial advisers.

PNB is the country’s fifth largest bank by asset size. In 2018, it earned a net income of P9.6 billion, a 17.2-percent increase from the previous year’s P8.2 billion.

ADVERTISEMENT - CONTINUE READING BELOW
Comments
View More Articles About:
About The Author
Pauline Macaraeg
Esquire Philippines
Pauline is Esquire Philippines’ data journalist. Follow her on Twitter @paulinemacaraeg.
View Other Articles From Pauline
Comments
Latest Feed
 
Share
At Lemuria, expect well-paired food and wine, as well as top-notch service.
 
Share
Marked by craftsmanship, artistry, and history, the Hawaiian shirt is a menswear staple.
 
Share
Eric Ripert and José Andrés on paying tribute to their friend Anthony Bourdain, and inviting the world to do the same.
 
Share
Amy Pascal says Hardy will be back "magnificently playing that character as no-one else can"
 
Share
They're cool, practical, and officially back in style. Here's how to wear them right.
 
Share
From Creed to Le Labo, here's a list of scents that are anything but basic.
 
Share
Taking eco-friendly fashion seriously but without preaching about it, Allbirds point to a bright future for ethical brands.
 
Share
The Lamando makes a strong case for getting a compact sedan if you’re looking for an everyday ride.
 
Share
A USAID-funded project provides high school graduates aged 18 to 24 with work-based skills training.
 
Share
Forky is a sentient spork who joins us in questioning the meaning of life.
 
Share
The Harvey Law Group helps people live in the country of their dreams, but it comes at a cost.
Load More Articles
Connect With Us