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
A history of the breeziest and coolest shirt that you should wear right now.
 
Share
Miguel Sapochnik also says he was strictly "visually policed" by showrunners
 
Share
Manila was the seat of power during colonial times which vacationers or diplomats visited often.
 
Share
"What an extraordinary life. What an extraordinary mom. What an incredible woman."
 
Share
 
Share
 
Share
Both Bimmers are packed with mouthwatering new features.
 
Share
“The dictionary is committed to making space for words from the Philippines.”
 
Share
One Championship is the largest producer of mixed martial arts content in Asia with over 1.7 billion potential viewers across 138 countries.
 
Share
Kubrick and King were a contentious duo. The upcoming sequel to The Shining is going to attempt to bridge that gap.
Load More Articles