The Philippine National Bank said Thursday it raised USD300 million through a five-year senior notes offering to fund its future growth. The debt notes are part of PNB’s USD2 billion medium term note program.
The PNB bond, which was assigned a an investment grade rating of Baa3 by Moody’s, was priced at T+102 basis points, with a fixed coupon rate of 4.85 percent. The order book reached USD1.1 billion during the two-day roadshow that began on 14 October.PNB chief financial officer Francis Albalate said it reduced interest rates and the lender’s improved operations made it “an ideal time to return to the market.”
In terms of geography, 89 percent of investors hailed from the Asia Pacific region, while 11 percent were from Europe, the Middle East, and Africa. Around 67 percent of investors were asset managers and hedge funds, 23 percent were banks, and the remaining 10 percent were private banks and broker-dealers.
PNB president Florido Casuela expressed appreciation for global investor support. “This offering shows strong trust in PNB. The funds will drive our sustainable financing initiatives and reinforce our role in Philippine banking development,” he said.
ING and J.P. Morgan acted as joint lead managers and joint bookrunners, while PNB Capital served as sole global coordinator. ING also held the role of sole sustainability coordinator.
For the first half of 2024, PNB reported a net income of P10.3 billion, up 5.6 percent year-on-year, achieving a return on average equity of 10.5 percent.
