PNB raises funds via shares sale

Tycoon Lucio Tan-led Philippine National Bank (PNB) has completed a P12-billion fundraising through the sale of new shares to existing stockholders.

In a disclosure to the Philippine Stock Exchange, PNB said it had issued 276.62 million shares at a preemptive rights offering at the price of P43.38 per share.

“The additional funding gives PNB more resources to be able to continue our growth aspirations around the archipelago over the medium term,” PNB president Wick Veloso said in a text message on Wednesday.

“We need this to grow. But more importantly, we need this to be able to better support our customers. We have a growing number of our corporate customers who are participating in the government’s build-build-build program,” Veloso added.

“Look around you, we are in a infrastructure boom. And there are no signs of any slowdown anytime soon.”

Proceeds from the offering will strengthen PNB’s capital base and enable the bank to sustain its asset growth.

PNB also recently boosted its lending capability with proceeds from a P13.87-billion local bond debut and a $250-million syndicated loan facility.

The bank’s total resources breached the P1-trillion mark as of end-March.  It also reported a consolidated net income of P1.9 billion for the first three months, 30 percent higher compared to the period last year. This was driven primarily by improvements in net interest income and trading and foreign exchange gains.

The bank grew its loan book by 17 percent to P588.9 billion at end-March.

PNB is currently valued by the stock market at around P84 billion.—DORIS DUMLAO-ABADILLA