The Philippine Stock Exchange (PSE) has given the green light to the planned stocks rights offering of Philippine National Bank (PNB), wherein the Lucio Tan-listed bank intends to raise as much as P6.5 billion.
A memorandum posted at the PSE website showed that the local bourse approved the application of PNB to list up to an additional 163 million common shares, with a par value of P40 each shares to cover the bank’s stock rights offering to all stockholders of record as of January 16, 2014.
Approved by its board on November 7, 2013, the offer period for the stock rights will be from January 27, 2014, to February 3, 2014.
PNB told the local bourse that the proceeds of the offer will be used primarily to build and refocus the bank’s consumer lending business through capital infusions into Allied Savings Bank (Allied Bank), a fully owned subsidiary of the bank.
On December 20, 2013, PNB started to seek for the approval from the Bangko Sentral ng Pilipinas for it to be able to proceed with its plan to infuse P10-billion in fresh capital to Allied Bank.
Also, PNB intends to use some of the proceeds from the offer to further strengthen its capital ratios under the Basel III standards which are to become effective January 1, 2014, as well as mitigate the reduction in its Capital Adequacy Ratio.
Part of the proceeds will also be used to support the bank’s asset growth in 2014 and the in subsequent years.
“The foregoing discussion represents a best estimate of the use of the net proceeds of the offer based on the bank’s current plans and anticipated expenditures. Actual use of the net proceeds may vary from the foregoing discussion, and management may find it necessary or advisable to use portions of the net proceeds of the offer for other purposes,” PNB said.