The Philippine National Bank is eyeing to raise as much as P10 billion in fresh capital by June, after securing the central bank’s approval for the fund-raising.
Horacio E. Cebrero III, PNB executive vice-president and head of treasury, told BusinessWorld the bank will raise P5.5 billion to refinance lower Tier 2 notes maturing in August but the amount can go up to P10 billion depending on the market appetite for the bank’s debt notes.
"This will be raised within the month or within the first week of June at the latest," he added.
In a disclosure to the stock exchange on Friday, PNB said "the Monetary Board, through Resolution No. 650 dated April 28, 2011, approved the request of PNB to issue peso-denominated 10-year unsecured subordinated debt qualifying as Lower Tier 2 capital in the amount of P10 billion."
The amount, aside from refinancing maturing debt, will also be used finance the bank’s expansion.
"The bank plans to grow its balance sheet through expanding its corporate and retail lending businesses," Mr. Cebrero said.
"The bank also plans to put up more branches this year," he added.
PNB plans to put up 15 to 20 branches this year, to be located in the CALABARZON (Calamba, Laguna, Batangas, Rizal and Quezon) or provinces close to Manila and Cebu and Davao.
The central bank has disallowed the big banks to put up more branches in Metro Manila, which is teeming with bank offices.
The arranger for the lower Tier 2 issue is ING Bank N.V. (Manila Branch). Details of the roadshow for the issuance are still being ironed out, Mr. Cebrero said.
PNB shares closed at P61.40 apiece on Friday, P1 lower than on Thursday. -- Ann Rozainne R. Gregorio
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