PNB plans P100-B bond issue

MANILA, Philippines — The Philippine National Bank (PNB) plans to raise up to P100 billion through the issuance of peso-denominated bonds and commercial papers.

In a disclosure to the Philippine Stock Exchange (PSE), the Lucio Tan-led bank said its board of directors has approved the establishment of a peso bonds and commercial paper program amounting to P100 billion to be issued in one or more tranches.

PNB earlier implemented various lending activities both in the offshore and onshore markets to raise long-term funds and comply with the required liquidity ratios mandated by the Bangko Sentral ng Pilipinas (BSP). 

In April last year, the bank raised $300 million from the issuance of fixed rate senior notes under its $1 billion euro medium term note program.

PNB also issued P22.495 billion worth of long-tern negotiable certificate of deposits (LTNCDs) over the past three years. It issued P7 billion worth of LTNCDs due 2022 in December 2014 and another P6.35 billion worth of LTNCDs due 2023 in October last year.

The BSP earlier said it expects banks to shift to the issuance of bonds and commercial papers instead of LTNCDs following the issuance of new regulations.

PNB reported a consolidated net income of P7.5 billion in the nine months last year, up 67 percent year on year.

The bank also absorbed the operations of its wholly-owned thrift bank subsidiary, PNB Savings Bank.

The move aims to strengthen PNB’s business in the consumer and small and medium enterprises sector. It will also expand the bank’s domestic footprint to 707 branches and more than 1,390 ATMs nationwide.

PNB’s maintains its position as the Philippine bank with the most extensive international footprint with more than 70 overseas branches, representative offices, remittance centers and subsidiaries across Asia, Europe, the Middle East, and North America.