Philippine National Bank plans to offer PHP 3.5 billion tier 2 notes

By Marisa Wong

Madison, Wis., April 20 - Philippine National Bank notified the Philippine Stock Exchange, Inc. that it plans to launch a second tranche of fixed-rate subordinated notes qualifying as tier 2 capital.

The bank said it intends to sell PHP 3.5 billion of 10-year notes.

The notes are callable after five years.

Initial price guidance for the notes has been set at 5¾% to 6%.

ING Bank NV, Manila Branch is the arranger for the tier 2 offering. First Metro Insurance Corp. and Multinational Investment Bancorp. will be selling agents, and PNB Capital and Investment Corp. and Allied Banking Corp. will be limited selling agents.

The offer period will be from April 23 to May 4. The notes are expected to be issued by May 9.

Proceeds from the offering will be used to finance asset growth and to help strengthen the bank's capital base.

The Pasay City, Philippines-based commercial and retail bank previously sold PHP 6.5 billion of 6¾% subordinated notes due 2021. The first tranche of tier 2 notes settled on June 8, 2011.

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