PHILIPPINE SAVINGS Bank (PSBank) raised P4.65 billion from its latest bond issuance, cutting short its offer period on Monday for the three-year fixed- rate bonds due to strong demand.

In a disclosure to the local stock exchange Tuesday, the thrift banking arm of Metrobank Group said they upsized the issue from the initial P3-billion plan as the offer was almost two times oversubscribed.

PSBank said the offer period, which started on Jan. 9, closed on Monday, a week earlier than the initial plan to end it on Jan. 21.

The bonds carry an interest rate of 4.5% per annum with quarterly interest payments. The principal amount will be paid on the maturity date in 2023.

The Ty-led thrift bank said proceeds of the fund-raising activity will be used to finance its future business expansions, particularly for its consumer banking business.

The three-year bonds will be listed at the Philippine Dealing & Exchange Corp. next month, Feb. 4.

The issuance marked the second tranche of PSBank’s P40-billion funding program, following the first issue where the lender raised P6.3 billion.

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

PSBank’s net earnings rose 20% in the third quarter of 2019 to P813 million on the back of the nine percent increase in its core revenues which were largely from interest income and fee-based income.

The bank’s shares went up 1.93% or by P1.10 to P58.20 apiece on Tuesday from the previous day’s P57.20 level. — B.M. Laforga