Philippine National Bank, the country's fifth largest bank, successfully concluded the offering of Tranche II of its Unsecured Subordinated Notes Qualifying as Tier 2 Capital on May 2, 2012. The PNB Tier 2 Notes generated strong market demand, prompting PNB to close the offering earlier than the scheduled end of offer date. PNB can issue up to a maximum of PhP3.5 billion, the remaining balance of the PhP10.0 billion approved by Bangko Sentral ng Pilipinas last year. In June 2011, PNB had already issued PhP6.5 billion of Tier 2 Notes.
According to Mr. Horacio E. Cebrero III, PNB's Executive Vice President & Head of Treasury Group, "We are pleased with the success of this second tranche. Despite a number of competing issues in the market, the demand for the PNB Tier 2 Notes remained strong, reflective of investors' positive credit outlook of the bank, thus allowing us to price the issue almost at par with the 10-year PDST-F benchmark".
The coupon rate for this second tranche has been set at 5.875% p.a., lower by 87.5bps vs. the 6.75% coupon of the initial tranche; and will be fixed until the maturity of the Notes in 2022. PNB has the right to redeem the Notes after the end of the 5th year, subject to certain regulatory conditions. Proceeds of the issuance will be used to finance asset growth and further enhance the Bank's capital base.
ING Bank N.V., Manila Branch was the Lead Manager and Sole Bookrunner for the issue. Selling Agents included ING, First Metro Investment Corporation and Multinational Investment Bancorporation while PNB, PNB Capital and Investment Corporation and Allied Banking Corporation were Limited Selling Agents. - https://www.affordablecebu.com/
Please support us in writing articles like this by sharing this post
Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.
--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.
"Philippine National Bank Tranche II of Subordinated Notes Offering Closes Early Due to Strong Demand" was written by Mary under the Banking category. It has been read 2074 times and generated 0 comments. The article was created on 03 May 2012 and updated on 03 May 2012.
|
