PNB doubles euro note program; announces P12 billion rights offer

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PHILIPPINE National Bank said it doubled the size of its overall euro medium-term note (MTN) program to $2 billion, after announcing plans to tap the same facility for a further $300 million.

In a disclosure to the bourse Friday, the bank said its board approved the increase in its euro MTN program to $2 billion from the initial $1 billion.

Further details were not immediately available on Friday.

PNB established its euro note program in April last year. During that month, it allocated $300 million in proceeds from the program to support its dollar lending.

The bank said last week that it wants to raise another $300 million in fresh funds through the MTN program.

Apart from the euro term notes, PNB will also raise about P12 billion through a rights offer of up to 300 million shares. The offer will run between June 26 and July 5, with the proceeds to strengthen its common equity tier-1 ratio.

The ex-rights date for the offer is June 18.

In early May, PNB issued P13.87 worth of two-year peso bonds, with the proceeds to support the bank’s lending business.

The bond coupon was 6.3%, payable quarterly until May 2021. The issue was oversubscribed, attracting investor interest equivalent to nearly three times the announced issue size of P5 billion.

PNB booked a net profit of P1.9 billion in the first quarter, up 30% from the same period last year.

PNB shares closed at P57.60 Friday, down P2.15 or 3.60%. — Karl Angelo N. Vidal