PHILIPPINE SAVINGS BANK (PSBank) is looking to raise P3 billion via two-year bonds to diversify its funding sources and expand its consumer business.
In a regulatory filing on Tuesday, the thrift lending arm of the Metropolitan Bank & Trust Co. (Metrobank) Group announced its maiden peso-denominated fixed-rate bond offer from July 1-17 through which it wants to raise at least P3 billion.
The two-year bonds were priced at 5.6% per annum to be paid quarterly until 2021.
The notes require a minimum investment of P500,000 and in increments of P100,000 thereafter.
The bank announced in March it will offer fixed-rate peso bonds amounting to P40 billion, which will be offered in multiple tranches.
“We have always been on the lookout for opportunities to diversify our funding sources,” PSBank President and Chief Executive Officer Jose Vicente L. Alde said in the statement.
“Given market developments, we believe that this bond issuance is properly timed to provide potential institutional and individual investors with an alternative investment to lock-in their funds at a higher rate yield and for a relatively shorter tenor.”
He added that proceeds from the fund-raising activity will be used to support the lender’s consumer business to provide innovative banking solutions and services.
The two-year bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on July 24.
Standard Chartered was tapped to be the sole arranger of the transaction. It also serves as a selling agent alongside PSBank, Metrobank and First Metro Investment Corp.
The thrift lender has been active in the capital markets recently. In January, the bank raised P8 billion via stock rights offer, selling 142.9 million common shares priced at P56 apiece during Jan. 7-11 offer period.
PSBank also raised P5 billion and P3 billion last year by offering long-term negotiable certificates of deposit an medium-term fixed rate notes, respectively.
The lender booked a P680.7-million net income in the first quarter, up 10.3% from the same period in 2018, driven by interest income growth and expense management.
Local debt watcher Philippine Ratings Services Corp. affirmed its PRS Aaa (corp.) issuer rating on PSBank last month, indicating continued growth in core interest income and strong market position.
Meanwhile, PSBank’s parent firm Metrobank launched yesterday its “Meaningful Banking” communication campaign to signal commitment to serve the evolving needs of its clients.
“Meaningful Banking is Metrobank’s north star as we start on a transformation journey,” Metrobank President Fabian S. Dee said in a press conference Tuesday. “Even we are not yet able to serve them perfectly now, we commit to continuously improve so that we can deliver meaningful banking every step of the way.”
In the near future, Metrobank said it targets to offer new and more relevant products and services to help fulfill their clients’ needs. — Karl Angelo N. Vidal