Philippine National Bank to raise US$300 million

Offering new shares to raise cash.

The new shares offering will boost PNB’s public ownership to about 25% from the current 18.99%. There could be some secondary shares to be sold alongside the primary shares.

Philippine National Bank president Omar Mier, however, said the bank’s preparations for the new share offering was delayed the recent slump in the Philippine stock market.

“Definitely before the end of the year, we’ll do that. We’re working on the assumption that prices will recover,” Mier said.

Universal and commercial banks are required by the Bangko Sentral ng Pilipinas, the central bank, to adopt by Jan. 1, 2014 the capital adequacy standards under Basel III.

This framework introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extend the coverage of financial risks and have stronger firewalls against periods of stress.

Mier said this recapitalization program will allow PNB to maintain a core or tier 1 capital adequacy ratio (CAR) of 15% of risk assets and overall CAR of 18%.

 


 

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