PNB raises P15.7B from local bond market comeback
Philippine National Bank (PNB) made a strong comeback to the domestic debt market after six years, raising P15.7 billion from its multi-tenor bond offering.
In a stock filing on Thursday, the company said it obtained P10.88 billion from the three-year fixed rate (Series A) Association of Southeast Asian Nations (Asean) sustainability bonds due 2028. This batch carries an interest rate of 5.4877 percent per annum.
The five-year bonds, which have an interest rate of 5.7764 percent per year, raised P4.82 billion.
The bank said this Asean sustainability bond offering was conducted under its P50-billion bond and commercial paper program.
“The issuance marks the bank’s successful return to the domestic debt capital market since 2019, garnering an order book that was more than 5.2 times oversubscribed to the initial target size on the back of the strong support from institutional and retail investors,” it said.
For this move, it tapped PNB Capital and Investment Corporation, ING Bank N.V., Manila Branch and Standard Chartered Bank as the joint lead arrangers and bookrunners. They also served as selling agents.
The bonds were listed on the Philippine Dealing & Exchange Corp.
PNB intends to use the new funds to support its projects under the group’s sustainable financing framework.
“By channeling funds toward eligible green and social projects under our Sustainability Financing Framework, we aim to create long-term value for our stakeholders while contributing to the country’s sustainable development goals,” PNB president and CEO Edwin Bautista said in an earlier statement.
“This offering also underscores our confidence in the market and our readiness to support the evolving needs of our customers and communities,” the official added.
In the first three quarters, PNB’s bottom line jumped 23 percent to P18.5 billion against the P15 billion booked a year ago.
This was as loans and investment securities rose by 9 percent and 13 percent, respectively.
