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PNB increases medium-term borrowing program to $2b

Philippine National Bank, the fifth-largest lender in terms of assets and controlled by airline and tobacco tycoon Lucio Tan, has completed the update of its medium-term note program that includes the increase in its amount to $2 billion from $1 billion.

The bank in a disclosure to the stock exchange Friday said the update would allow PNB from time to time to issue, offer or sell notes in the aggregate amount of up to $2 billion or its equivalent in other currencies “in such amount, tenor, number of tranches, and under such other terms and conditions as the bank may subsequently approve.”

“The bank shall duly disclose to the exchange the terms and conditions of any such issuance at the appropriate time,” it said.

Citigroup Global Markets Ltd., MUFG Securities Asia Ltd., Standard Chartered Bank, the Hong Kong and Shanghai Banking Corp. Ltd., and Wells Fargo Securities LLC acted as the arrangers and dealers of the program update.

“We wish to further advise that the bank has obtained approval-in-principle from the Singapore Stock Exchange Securities Trading Ltd. for notes issued from the increased program to be listed on the SGX-ST,” it said.

“PNB has prepared and will submit to the SGX on June 14, 2019 the offering circular in relation to the program, in accordance with the rules of SGX... ,” it said.

Earlier, the bank said the issuance of notes would help it raise more funds to finance future growth and expansion program.

Early this month, the PNB board approved the increase of its euro medium-term note program from $1 billion to $2 billion.

The bank in February raised P8.22 billion through the issuance of long-term negotiable certificates of time deposits that will mature in 2024 as part of a series of fundraising activities.

PNB in 2018 announced a plan to raise P20 billion through the issuance of LTNCDs to extend the maturity profile of the bank’s liabilities as part of overall liability management.

It also plans to raise P12 billion through the sale of shares to existing shareholders led by parent LT Group of Companies. Proceeds of the planned stock rights offering would be used to strengthen its common equity Tier 1 and enable the bank to sustain its asset growth.

PNB recently closed and signed a $250-million three-year syndicated term loan facility with a large group of international and regional Japanese banks.

Topics: Philippine National Bank , PNB , Lucio Tan
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