Philippine National Bank (PNB), which is controlled by tycoon Lucio Tan, said Tuesday it was offering at least P3.0 billion worth of tier 2 notes to raise funds to refinance its outstanding notes callable in February 2009.
PNB told the stock exchange that it started offering the notes on June 3.
"The market response to the issue has been very strong with over P7.0 billion in total orders as of last Friday, June 6," it said.
The indicative interest rate for the issue was 8.50 percent and the final rate would be determined this week, the bank said. The notes will have an initial maturity of 10 years but are callable by 2013.
PNB is looking to close the offer period on June 18 although it reserves the right to end it earlier subject to an agreement with its arranger, Deutsche Bank AG, Manila Branch.
The bank recorded a net income of P1.5 billion in 2007, up 83 percent from what it had in 2006. It had a total capital of P30.2 billion and a capital adequacy ratio of 19.0 percent. The central bank requires a minimum CAR of 10.0 percent.
PNB is set to merge with another Lucio Tan-controlled bank, Allied Banking Corp., within the third quarter of this year to create the country's fourth-largest bank by assets. The merger will be done through a share swap.