by Jan Michael Carpo, Reporter
Led by prominent businessman Lucio Tan, the Philippine National Bank (PNB) is gearing up for a return to the offshore debt market in 2024. Their goal is to raise at least US$300 million through the issuance of dollar bonds.
This move comes after the bank’s board of directors approved the offering on May 24th, with the possibility of increasing the amount raised.
Additionally, the board greenlit an expansion of the bank’s euro medium-term note program, doubling its capacity from US$1 billion to US$2 billion.
IMAGE CREDIT: https://www.pnb.com.ph
A successful track record in bond issuances
PNB’s last venture into the offshore debt market was a resounding success.
In June 2019, they aimed for a minimum of US$300 million but ended up attracting significantly more interest, with the order book reaching US$3.25 billion.
This not only surpassed their target but also broadened their investor base. A quarter of the notes were allocated to European investors while the remaining 75 per cent went to Asian investors.
The offering involved over 200 accounts and was managed by a trio of joint lead managers and bookrunners: Citigroup, HSBC, and Standard Chartered Bank.
PNB’s foray into local currency bonds was equally successful. Their maiden issuance of fixed-rate peso bonds in May 2019 raised PHP13.87 billion.
The initial offering volume of PHP5 billion for the two-year bonds, maturing in 2021, was oversubscribed three times.
This further bolstered the bank’s overall funding program, which already includes a PHP100 billion peso bond and commercial paper program.
PNB’s first-quarter performance in 2024 has also been positive. They reported a 10.4% increase in profits, reaching PHP5.31 billion compared to PHP4.81 billion in the same period last year. This growth is attributed to a combination of core business expansion and a reduction in credit provisions.
The Philippine National Bank’s return to the offshore debt market signifies its confidence in its future and its commitment to continuous growth. With a successful track record in bond issuances and a strong first-quarter showing, PNB is well-positioned to achieve its fundraising goals this year.