PNB completes notes offering

Lucio Tan-owned Philippine National Bank on Thursday disclosed that it has completed the offering of notes to refinance its earlier capital-raising activity and to fund expansion. In a statement to the Philippine Stock Exchange, the lender said it "generated strong demand from both retail and institutional investors" and was able to raise P6.5 billion. The unsecured subordinated notes have a fixed coupon rate of 6.75 percent until the maturity of the notes in 2021. PNB has the right to redeem the notes after the end of the fifth year, subject to certain regulatory conditions. "Proceeds of the issuance will be used to refinance PNB's P5.5-billion Lower Tier 2 Notes that have a call option exercisable in August 2011. The balance will be used to finance asset growth and strengthen the bank's capital base," PNB said. ING Bank N.V., Manila Branch was the lead manager and sole bookrunner for the issue. First Metro Investment Corp. , and Multinational Investment Bancorp. were selling agents for the offering while PNB, PNB Capital and Investment Corp. and Allied banking Corp. were limited selling agents. PNB officials earlier said the bank is planning to put up 15 branches to 20 branches within the year. For the first three months of the year, the bank's earnings slipped 64 percent to P319.78 million owing to losses in market-to-market valuation of investments securities. -- CMA/OMG, GMA News