PHILIPPINE National Bank (PNB) wants to raise $300 million in fresh funds via its euro medium-term note program, it said on Friday.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its board of directors at its meeting on Friday approved the issuance of $300 million out of its $1-billion euro medium-term note program, with the option to upsize.

Further details on the issuance were not immediately available on Friday.

PNB established its euro note program in April last year. During the same month, it made a maiden drawdown of $300 million from the program, with the proceeds to be used for its dollar loans.

Moody’s Investors Service has assigned an investment-grade rating to PNB’s note issuance, matching the Baa2 rating of the Philippine government.

Banks usually employ a note facility to raise more capital to fund their programs and operations.

Earlier this month, PNB issued P13.87 worth of two-year peso-denominated bonds, with the proceeds set to support the bank’s lending business.

The bonds carry a coupon of 6.3% per annum to be paid quarterly until May 2021. PNB saw an oversubscription of almost three times the announced issue size of P5 billion.

PNB booked a net income of P1.9 billion in the first quarter, 30% higher than the P1.5 billion booked in the same period last year.

Shares in PNB closed at P59 apiece on Friday, up by 90 centavos or 1.55%. — R.J.N. Ignacio