PNB to redeem 2006 debt papers

Lucio Tan-owned Philippine National Bank will be redeeming P5.5-billion worth of notes it had issued in 2006. In a statement to the Philippine Stock Exchange on Friday, PNB said the Monetary Board of the Bangko Sentral ng Pilipinas has approved its bid to exercise the call option and redeem all of its P5.5-billion outstanding notes "by paying the noteholders of the face value of the notes plus accrued interest at the interest rate." The call option date will be on August 11, 2011. In May, PNB announced that it would raise more capital and finance its expansion program by selling P10.5-billion worth of assets and debt papers. Expansion plans include putting 158 automated teller machines and proceed with its merger with Allied Bank, another Lucio Tan-led lender. -- CMA/OMG, GMA News