PNB firms up $1-billion offshore borrowing plan

MANILA, Philippines — Philippine National Bank (PNB) has tapped the arrangers and dealers of its planned offshore borrowing program from which it intends to raise as much as $1 billion.

In a disclosure to the Philippine Stock Exchange (PSE), PNB has mandated Citigroup Global Markets Ltd, MUFG Securities EMEA Plc, Standard Chartered Bank, and Wells Fargo Securities LLC to act as lead arrangers and dealers for the Euro Medium Term Note (EMTN) program.

The bank, owned by tobacco and airline magnate Lucio Tan, has secured the approval-in-principle from the Singapore Stock Exchange for the listing of the program and notes.

It has submitted the offering circular for the planned fund raising activity to the Singapore Stock Exchange yesterday.

The listed bank is also raising as much as P20 billion through the issuance of long term negotiable certificates of deposits (LTNCD) to extend the maturity profile of the bank’s liabilities as part of overall liability management and compliance with required BSP liquidity ratios.

Likewise, proceeds would also help raise long-term funds for general corporate purposes.

LTNCDs offer higher interest rates but can not be pre-terminated like regular time deposits.

PNB has issued P22.495 billion in LTNCDs over the past three years. It issued P7 billion worth of LTNCDs due 2022 last December 2014 and another P6.35 billion worth of LTNCDs due 2023 in October last year.

PNB recorded a double-digit 14 percent growth in net income to P8.2 billion, while consolidated resources rose 11 percent to P836.2 billion.

PNB has a total of 692 branches and 1,243 ATMs nationwide. It also has the most extensive international footprint with 72 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East, and North America.