PHILIPPINE National Bank is set to raise $750 million via 5.25-year fixed-rate senior notes to support lending growth.
The Tan-led bank said in a regulatory filing on Friday that it will return to the offshore bond market this month by issuing dollar-denominated notes to be drawn from its $2-billion medium-term note program.
The 5.25-year debt papers carry a yield of 3.391% and a coupon rate of 3.28%.
Debt watcher Moody’s Investors Service will rate the papers “Baa2,” two notches above the minimum investment grade.
PNB saw overwhelming demand, booking orders totalling $3.25 billion from 240 accounts. In terms of geographic allocation, roughly three-fourths of the notes were allocated to Asia, while the rest went to Europe.
Between June 18 and 20, the bank conducted meetings with investors in Hong Kong, Singapore and London to drum up interest.
The notes will be issued on June 27.
Proceeds of the bonds will be used to support the lender’s loan growth as it shifts its focus on the opportunity brought by the positive growth momentum of the domestic economy.
“The funds we are raising now are going to be used to help fund our growth trajectory. We are totally aligned with the Government’s ‘Build, Build, Build’ program and the focus on developing infrastructure around the archipelago,” PNB President and Chief Executive Officer Jose Arnulfo A. Veloso said.
Citigroup, HSBC and Standard Chartered Bank acted as joint lead managers and bookrunners of the transaction.
The bank has been ramping up its fundraising activities this year. From July 3-12, PNB will raise roughly P12 billion via stock rights offer of 276.63 million common shares priced at P43.38 apiece.
PNB said proceeds of that fundraising activity will be used to fund the asset growth of the bank.
In February, the bank also issued P8.22 billion worth of long-term negotiable certificates of deposit for maturity profile extension.
PNB booked a net profit of P1.9 billion in the first quarter, up 30% from the same period last year.
Shares of the bank stood at P49 apiece on Friday, down 50 centavos or 1.01% from Thursday’s finish. — Karl Angelo N. Vidal