PNB plans return to offshore debt market

WIKIMEDIA.ORG

PHILIPPINE National Bank (PNB) is looking to raise at least $300 million from an issuance of offshore bonds, it said on Monday.

The offer, which has an option to upsize, was approved by the bank’s board of directors on May 24, the lender said in a disclosure to the local bourse.

Alongside the offer, PNB’s board also approved the doubling of its euro medium-term note program to $2 billion from $1 billion previously.

The approved offer will be issued out of this updated program, the bank said.

In 2019, PNB raised a record $750 million from the offshore debt market through fixed-rate senior notes, more than double its $300-million target, as the order book reached $3.25 billion.

These bonds were priced at 99.473% for a yield of 3.391% and a coupon rate of 3.28%.

Proceeds from the bonds were used to support PNB’s loan expansion.

PNB’s net income rose by 10.39% year on year to P5.31 billion in the first quarter amid higher interest earnings and decreased provisions and expenses.

As of end-2023, PNB was the seventh-largest bank in the country in terms of assets with P1.21 trillion, latest central bank data showed.

Its shares down by 15 centavos or 0.65% to end at P23 apiece on Monday. — AMCS