PNB Stock Rights Offering

Manila—(PHStocks)—The Philippine Stock Exchange (PSE) has approved the application of the Philippine National Bank (PSE: PNB) to list up to an additional 163,000,000 common shares, with a par value of PhP40.00 per shares, to cover the Bank’s stock rights offering to all stockholders of record as of 16 January 2014.

The Offer Price will be set on the Pricing Date based on the ten (10)-day volume weighted average price of the Bank’s common shares in the Exchange, subject to a discount of not less than 15%.

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, a fully owned subsidiary of the Bank; to further strengthen the capital ratios of the Bank under the Basel III standards which are to become effective January 1, 2014; to mitigate the reduction in the CAR of the Bank once certain of the Bank’s Tier 2 capital instruments become ineligible as capital by December 31, 2015 in accordance with BSP Circular No. 781; and to support the Bank’s asset growth in 2014 and in subsequent years.

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