PNB rights offer OKd

The Philippine Stock Exchange has approved the P12- billion stock rights offering of tycoon Lucio Tanled Philippine National Bank, which intends to strengthen its core capital and sustain asset growth.

About 276.62 million new common shares will be offered to existing stockholders at P43.38 a share, based on an entitlement ratio of one share for every 4.516 common shares as of record date June 21.

The stock rights offering will run from July 3 to 12, while listing on the Philippine Stock Exchange is tentatively set for July 22, based on an offering circular posted by the local bourse.

The lead underwriter for the offering is PNB Capital and Investment Corp.

PNB’s major shareholder LT Group Inc. is expected to support the offering.

The public holds around 21 percent of its shares.

The bank’s consolidated risk- based capital adequacy ratio ( CAR) so far exceeds the minimum regulatory requirement of 10 percent.

However, the bank wants more leeway to expand its capital base to fund future expansion.

PNB recently boosted its lending capability with proceeds from a P13.87-billion local bond debut and a $250-million syndicated loan facility.

The bank’s total resources breached the P1- trillion mark as of end- March.

It also reported a consolidated net income of P1.9 billion for the first three months, 30- percent higher compared to the period last year.

PNB is currently valued by the stock market at P79.4 billion.