PHILIPPINE NATIONAL Bank (PNB) raised P8.22 billion from the issuance of long-term notes to investors, with the additional funding meant to manage debts and offer more loans.
In a disclosure, PNB announced that its latest offering of long-term negotiable certificates of deposit (LTNCDs) yielded the biggest turnout in the bank’s history, coming from an initial fund-raising target of P3 billion.
The offering was met by overwhelming demand from both retail and corporate investors and went nearly three times oversubscribed.
The bank owned by Lucio C. Tan said the additional capital is meant to extend the maturity of the bank’s debt profile as well as raise long-term funds as it hands out more loans.
The LTNCDs come with a 5.75% coupon rate, and are due in 5.5 years. The papers will be listed on the Philippine Dealing Exchange next Wednesday.
“This is a strategic exercise for us as we continue to grow our loan portfolio,” PNB President and Chief Executive Officer Jose Arnulfo “Wick” A. Veloso was quoted as saying in a statement.
“Raising long term funding at attractive levels offers our investors an opportunity to support our goals, while allowing us to also provide cost-competitive loans to our clients who would like to grow alongside our strong Philippine economy.”
Global banks HSBC and ING Bank N.V. were tapped as joint lead managers for the transaction. Other selling agents were the First Metro Investment Corp. and the Multinational Investment Bancorporation.
Last month, PNB revealed plans to raise as much as P100 billion in fresh capital through a series of bond offerings this 2019. The bank’s board of directors approved the creation of a peso bond and commercial paper program for the lender.
This follows the $300 million which PNB raise through medium-term notes in April 2018.
PNB, the fifth-biggest lender in the country, yielded a P7.5 billion net income from January-September, which is 67% higher from the comparable period in 2017. Total loans stood at P550.7 billion at end-September, against a P692.8-billion deposit base.
Shares in PNB closed at P48 apiece on Thursday, up 90 centavos or 1.91% from Wednesday’s P47.10 finish. — Melissa Luz T. Lopez

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