PBB raises P3 billion via notes

PHILIPPINE Business Bank (PBB) raised P3 billion in fresh funds via a corporate note issuance to support its consumer loan business.

In a disclosure to the local bourse on Tuesday, the Yao-led lender said it issued P3 billion in three-year corporate notes in partnership with BDO Unibank, Inc. and BDO Capital & Investment Corp.

The issuance marks the maiden tranche of PBB’s P10-billion debt program approved by its board of directors in March.

The thrift lender declined to disclose the coupon rate of the debt papers, although PBB President and Chief Executive Officer Rolando R. Avante said in a text message that the pricing was “based on market conditions.”

“The proceeds from the notes facility will be used to finance the bank’s growing funding requirements and capitalize on attractive lending opportunities,” the bank said in the disclosure.

In particular, Mr. Avante said the raised funds will “address balance sheet term items related to consumer loans.”

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

Mr. Avante previously said that the lender’s LTNCD issuance will depend on the bank’s needs as well as market conditions.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates.

However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

PBB booked a P251-million net income in the first quarter, up 38.5% from P181.3 million in the same period last year, on the back of its lending and treasury businesses.

Shares in PBB closed at P13.10 apiece on Tuesday, down 10 centavos or 0.76%. — Karl Angelo N. Vidal