PNB prices up to $259-M rights issue at 15 pct discount

Posted at 01/10/2014 11:43 AM

MANILA - Philippine National Bank has priced a rights issue at a 15 percent discount, seeking up to P11.6 billion ($259 million) to boost consumer lending and strengthen its balance sheet ahead of tighter global rules on banks' capital bases.

The bank will offer up to 162.9 million new shares to its existing shareholders, led by Philippine conglomerate LT Group Inc, at P71 apiece, it said on Friday. PNB closed at P83.50 on Thursday ahead of the pricing.

PNB was up 0.12 percent at P83.60 as of 10:20 a.m. 0220 GMT on Friday.

Under terms of the week-long offer, starting on Jan. 27, eligible shareholders will have the right to buy 15 new shares for every 100 existing PNB shares they hold. PNB said LT Group, owned by the country's second-richest man Lucio Tan, will subscribe to 60 percent of the offer.