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PSBank raising P3 billion from sale of fixed-rate bonds

 

Philippine Savings Bank, the thrift-banking unit of the Metrobank Group, is raising P3 billion through the issuance of peso fixed-rate bonds from Jan. 9 to 21, 2020 following its maiden offering in July last year.

The bank said in a statement to the stock exchange Thursday the bonds had a tenor of three years and were priced at 4.5 percent yearly, with an option to increase the size, with interest payments made every quarter and the full principal paid out at maturity in 2023.

The bonds will require a minimum of P500,000 from investors, with increments of P100,000. The bonds will be officially issued and listed on Philippine Dealing Exchange Corp. on Feb. 4, 2020.

“We firmly believe that this bond issuance comes at a most opportune time—at the beginning of an exciting new year and decade, most especially for individual and institutional investors who are looking at new investment alternatives,” said PSBank president Jose Vicente Alde.

“As we continue to diversify our funding sources, we remain to be fully committed to upgrading our industry-leading products, services, and offerings for the maximum benefit of our customers,” he said.

The Standard Chartered Bank is the sole arranger and the primary selling agent of the bond offer, with PSBank, Metrobank, and First Metro Investment Corp. as the other authorized selling agents.

PSBank reported a highly successful maiden bond offering in July, which raised P6.3 billion, more than double the planned P3 billion. In just five days, the total order book was four times oversubscribed, prompting the bank to cut the offering period short.

PSBank posted a 20-percent jump in net income in the third quarter 2019 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 last year.

Core revenues comprising of interest income and fee-based income rose 9.3 percent on year. The bank’s arnings 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 Exchange Corp.
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