PHILIPPINE National Bank (PNB), the banking arm of the Lucio Tan Group, plans to raise at least $300 million (approximately P17.4 billion) in fresh funds via a note offering in support of growth initiatives.

The PNB board, in a meeting last week, approved and confirmed the updating of its euro medium-term note (EMTN) program amounting to $2 billion, the bank said in a regulatory filing on Monday.

At the same meeting, the board also authorized the issuance of $300 million out of the EMTN with an option to upsize if there was strong demand from investors, the bank added.

The country's seventh-largest lender by asset size announced it was establishing a $1-billion EMTN in April 2018. The following year, the bank doubled its euro note program to $2 billion.

The bank gave no further details about the planned issuance.

For 2024, PNB plans to carry out strategic initiatives to continue achieving safe, profitable, and sustainable growth.

"With the commitment to ensure a fulfilling banking experience for its customers, anytime and anywhere, PNB will further enhance its products and services across multiple channels," it said in its 2023 annual report.

"The country's sustained economic growth will provide the bank with more opportunities to increase its profitability."

PNB also intends to explore new business opportunities and deepen its market penetration in the small and midsize enterprise and consumer spaces.

It vowed to continue helping to build a competitive and inclusive economy while empowering its clients and investors through its sustainable financing framework.

"The bank will also continue to incorporate sustainability principles... into the corporate governance framework, risk management systems, and strategic objectives, consistent with the size, risk profile, and complexity of its operations."

PNB started this year on a high note, with first-quarter earnings growing by 10 percent to P5.3 billion from P4.8 billion in the same period in 2023.

Core income was said to have jumped 7 percent to P12.9 billion from P12 billion, as net interest income surged 12 percent to P11.7 billion from P10.5 billion.

As of end-December 2023, PNB operated 631 domestic branches and around 1,680 automated teller and cash-accepting machines. Its total assets stood at P1.2 trillion.

PNB shares were down 0.65 percent at P23 each on Monday amid a 0.73-percent fall for the benchmark Philippine Stock Exchange index.