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PBB to raise P10 billion via bond issuance

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PHILIPPINE BUSINESS Bank (PBB) is set to raise P10 billion through peso-denominated bonds to fund its business operations.

In a regulatory filing, the Yao-led lender said it will issue P10 billion worth of peso-denominated bonds.

The additional capital to be raised via the issuance will be used for “general corporate purposes,” the bank added.

PBB Chief Executive Officer Rolando R. Avante said via text that the savings lender plans to initially offer P3 billion, which will constitute the first tranche of its P10-billion bond program.

“We’re in the final planning stage [already]. Timing of the issue will be market situation dependent,” Mr. Avante told BusinessWorld yesterday.

The savings bank is one of the lenders that recently tapped the local bond market after the Bangko Sentral ng Pilipinas (BSP) relaxed its rules on banks’ fundraising activities.




Circular No. 1010 issued by the central bank in August 2018 simplifies the process for lenders looking to raise funds via bonds, doing away with having to secure approval from them.

The reform is part of streamlined rules meant to deepen capital markets.

Last year, PBB announced it is looking at raising up to P10 billion in long-term negotiable certificates of deposit, which will allow the bank to “capitalize on attractive lending opportunities as the Philippine economy continues to expand.”

When sought for comment, Mr. Avante said the LTNCD issuance will “depend if the market condition warrants and a need arises.”

Earlier this year, PBB said its merger with Insular Savers Bank, Inc. (A Rural Bank) is expected to be completed before June 30, subject to the approval of the Securities and Exchange Commission.

PBB posted a P262.09-million net income in the third quarter of 2018, up 162.1% from the previous year, boosted by the robust growth of its core businesses.

Shares in PBB closed unchanged at P13.86 each on Thursday. — Karl Angelo N. Vidal