PNB raises $750M via offshore bond issuance

Tycoon Lucio Tan-led Philippine National Bank has raised $750 million from its foray into the offshore bond market, the largest US dollar bond issuance by a local bank to date.

PNB’s fixed-rate senior notes maturing in 5.25 years or by September 2024 carry a coupon rate of 3.28 percent a year.
These will be drawn down from PNB’s $2-billion medium term note (MTN) program.

The fund-raising followed PNB’s meetings with investors in Hong Kong, Singapore and London from June 18 to 20. The notes are rated Baa2, or two notches above investment grade, by global credit watchdog Moody’s.

“The funds we are raising now are going to be used to help fund our growth trajectory. We are totally aligned with the government’s ‘Build, Build, Build’ program and the focus on developing infrastructure around the archipelago. This fundraising also supports the vision of Dr. Lucio Tan of further contributing to the Philippine growth story,” PNB president Wick Veloso said in a statement from London.

Over 240 accounts participated in the transaction, which fetched an order book of over $3.25 billion. The notes will be issued on June 27.

In terms of geographic allocation, about 75 percent of the notes was allocated to Asia and the rest to investors from Europe, further diversifying PNB’s investor base.

Citigroup, HSBC and Standard Chartered Bank were joint lead managers and bookrunners for the transaction.

As of end-March, PNB achieved a milestone with total resources reaching P1 trillion, up by 21 percent year-on-year.