PSBank sells P4.65 billion worth of bonds after strong demand

Philippine Savings Bank, the thrift-banking unit of the Metrobank Group, raised P4.65 billion from the issuance of peso-denominated fixed-rate bonds due to strong demand from investors.

The bank said in a statement the amount raised was significantly higher than the planned initial offer of P3 billion. It said strong demand compelled it to cut short the offering period to Jan. 13, 2020 from Jan. 21, 2020.

“The three-year peso fixed-rate bonds which was priced at 4.5 percent per annum were almost two times oversubscribed. Interest payments will be paid on a quarterly basis,” PSBank said.

The second tranche is part of the banks’s P40-billion funding program. PSBank in July raised P6.3 billion from the first tranche. 

“Both issuances will give the bank an opportunity to access long-term funding as it further expands its consumer banking business,” it said.

The bond will be listed in Philippine Dealing and Exchange Corp. on Feb. 4, 2020. 

Standard Chartered Bank acted as arranger and selling agent, along with Metrobank, First Metro Investment Corp. and PSBank. 

Philippine Dealing and Trust Corp. will serve as the registry and paying agent of the issuance. Picazo Buyco Tan Fider and Santos served as transaction counsel and Development Bank of the Philippines as trustee.

PSBank is one of the biggest thrift banks in the country in terms of assets, loans, deposits, and nationwide coverage.

PSBank in the third quarter of 2019 posted a 20-percent jump in net income year on year to P813 million on the back of strong financial results from its core revenues.

The third-quarter performance brought the first nine months’ net income to P2.2 billion, up 8.4 percent over the same period in 2018.

Core revenues rose 9.3 percent on year, comprising of interest income and fee-based income. The earnings translated into an annualized return-on-assets of 1.2 percent.

PSBank’s loans and receivables rose 6.4 percent to P162.1 billion from P152.4 billion, fueled by auto and mortgage loan offerings.

Topics: Philippine Savings Bank , Metrobank Group , Philippine Dealing and Exchange Corp.
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