Tobacco and beer tycoon Lucio Tan’s banking unit Philippine National Bank got an instant leg-up as it bulked up its war chest with the issuance of P13.87 billion worth of fixed-rate peso bonds and the closing of a $250 million loan facility.
PNB received a resounding vote of confidence from local investors after its P5 billion bond offering was almost three times oversubscribed.
Its president and CEO Wick A. Veloso said the strong demand for the maiden issue is “a testament to investors’ strong confidence in the Tan-owned bank and the country’s economic stability.
The Tan-owned bank inked a $250 million three-year syndicated term loan with a group of international and regional Japanese banks.
According to PNB, the facility, which was originally targeting only $200 million, attracted total commitments of $370 million , representing an oversubscription of 2.7 times with lending commitments received from 14 Japanese and international banks with operations in Japan.
The last syndicated loan availed by PNB was in 2015.
“Over the past century, PNB has been very active in offering investment opportunities to customers. Aside from business expansion, the bond issuance is part of our efforts to diversify our funding sources to meet the financial needs of our growing customer base,” he said.
“We look forward to tapping the capital markets in a variety of formats, as we come up with new products to offer to our investors, and embark on a safe aggressive growth.”
PBB ended the first quarter with total resources of P1.03 trillion, up 21% to P176 billion. First quarter earnings jumped 30% to P1.9 billion