The bonds, priced at T+102 basis points, which means it offers 1.02 percent more than a standard benchmark rate, has a 4.85 percent coupon rate.
It was highly sought after, with orders exceeding $1.1 billion, making it 3.6 times oversubscribed.
Most investors (89 percent) came from the Asia Pacific region, while 11 percent were from Europe, the Middle East, and Africa. Asset managers and hedge funds dominated, making up 67 percent of the buyers.
ING and J.P. Morgan led the transaction, with PNB Capital as the sole global coordinator.
Management’s view
“We believe this is an ideal time to return to the market, given the reduction in interest rates complemented by the bank’s improved core banking activities,” Francis Albalate, chief financial officer of PNB, said in a statement.
“We have already enhanced our banking operations and processes to support continuous growth as we expect our business to further strengthen in the future,” he added.
“We are grateful for the support shown by global investors in our return to the international bond market after a 5-year hiatus. The result of this note offering is a clear indication of investors’ trust and confidence in PNB. This offering will fund the bank’s sustainable financing initiatives as we continue to solidify our position among the forerunners of nationwide development across the Philippine banking system,” said Florido Casuela, president of PNB.
