PNB Capital and Investment Corporation (PNB Capital), the investment banking arm of Philippine National Bank (PNB), successfully completed the first-ever successful domestic offering of the private placement of perpetual notes issued by P.A. Alvarez Properties and Development Corp (P.A. Properties) – one of the largest low- to medium-cost housing developers in the key growth areas of Luzon.
As the sole issue manager and lead arranger, PNB Capital structured an innovative financial instrument enabling P.A. Properties to tap long-term funding while keeping its leverage position at manageable levels. Proceeds were used to fund the company’s property development initiatives, including land banking, over the next five years.
The market reception to the perpetual notes was very positive. PNB Capital relied on P.A. Properties’ 25-year track record in the housing industry, its strong revenue growth and stable financial position, and the strong partnership between P.A. Properties and Hankyu Hanshin Holdings Group – a Japan-based conglomerate with business interests in transportation, real estate, entertainment and communications, travel, and hotels. Participants of the perpetual notes offering invested on retirement funds, trust funds, and included registered investment houses.
“We are grateful to have PNB Capital as the sole issue manager and lead arranger of this private placement. The successful execution of this offering addresses our funding needs, provides incremental capital to finance our robust development pipeline, and extends our debt maturity profile while motivating us to explore similar fund-sourcing initiatives in the future”, said P.A. Properties Chairman Romarico “Bing” Alvarez.
PNB Capital’s pursuit and commitment of providing innovative and strategic financing solutions that would complement the parent bank’s product offerings has allowed it to successfully complete the fundraising.
The perpetual notes were issued as an exempt transaction under Rule 10.1.4 of the 2015 Implementing Rules and Regulations of the Securities Regulation Code. In this regard, the securities were offered only to Primary Institutional Lenders.
In photo are (from left to right) Mr. Dindo Antonio Cagulat (Chief Operating Officer and Head of Investment Banking – Multinational Investment Bancorporation); Ms. Joy Jasmin Santos (Chief Trust Officer and Head of Trust Banking Group – Philippine National Bank); Mr. Jonathan Lu (President – P.A. Properties); Mr. Jose Arnulfo “Wick” Veloso (President and CEO – Philippine National Bank); Mr. Romarico “Bing” Alvarez (Chairman – P.A. Properties); Mr. Cenon “Jun” Audencial, Jr. (Head of Institutional Banking Sector – Philippine National Bank); Mr. Gerry Valenciano (President and CEO – PNB Capital and Investment Corporation); and Ms. Merced Elisa Romero (Vice President – Penta Capital and Investment Corporation)
About PNB Capital
PNB Capital, an investment house, was incorporated on July 30, 1997 and commenced operations on October 8, 1997. It is a wholly-owned subsidiary of the Philippine National Bank. Its principal business is providing investment banking services, namely: debt underwriting (bonds, commercial papers), equity underwriting, private placements, loan syndications, project finance, and financial advisory services. PNB Capital is authorized to buy and sell for its own account, securities issued by private corporations and the government of the Philippines. As of December 31, 2018, total assets of PNB Capital were at ₱1.56 billion while total capital was at ₱1.54 billion.
About P.A. Properties
For 25 years, Laguna-based P.A. Alvarez Properties and Development Corporation (P.A. Properties) has established a name in the competitive Philippine real estate industry by enabling the public to have their dream homes at affordable rates and payment schemes.
P.A. Properties, which has a capitalization of PHP3.8 billion (as of December 2018) and has already built about 19,000 housing units in Laguna, Batangas, Bulacan, Cavite, Pampanga, and Metro Manila, continues to embark on strategic expansion efforts to further build 25 additional housing communities in the next five years to help ease the more than 6 million housing backlog in the Philippines and contribute to the growth of the economy as well.
For more information about P.A. Properties, visit www.paproperties.com.ph
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