Philippine National Bank (PNB) has successfully tapped into international markets with a $300 million benchmark-sized Sustainability Regulation S offering of 5-year senior notes under its $2 billion Euro Medium Term Note programme.
PNB conducted a two-day roadshow starting on October 14, 2024 to engage with potential investors. The 5-year bond was priced at T+102 basis points, with a fixed coupon rate of 4.85 percent. The offering was met with strong demand, as the final order book was more than 3.6x oversubscribed, reaching $1.1 billion from global investors.
Moody’s has assigned an investment grade rating of Baa3 to the 5-year bond.
In terms of geographical distribution, 89 percent of the investors were from the Asia Pacific (APAC) region, while 11 percent were from Europe, the Middle East, and Africa (EMEA).
By investor type, 67 percent were asset managers and hedge funds, 23 percent were banks, and the remaining 10 percent were private banks, broker dealers and others.
“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. We have already enhanced our banking operations and processes to support continuous growth as we expect our business to further strengthen in the future,” said Francis Albalate, Chief Financial Officer of PNB.
