PHILIPPINE SAVINGS Bank (PSBank) is looking to raise P3 billion via peso-denominated fixed-rate bonds to diversify its funding sources.
In a disclosure to the local bourse, Metropolitan Bank & Trust Co.’s (Metrobank) thrift bank arm said it is offering P3 billion in three-year bonds, with the option to upsize. The offer period started yesterday and is set to run until Jan. 21.
The papers will have an interest rate of 4.5% per annum. Interest payments will be made quarterly and the principal will be paid at the maturity date in 2023.
“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,” PSBank President Jose Vicente L. Alde was quoted as saying in the statement.
In an e-mailed response, Mr. Alde said the latest bond issuance is the second tranche out of its P40-billion peso-denominated bond program that the bank launched in March last year.
“This P3-billion offer is our 2nd tranche. The first tranche was issued on July 24, 2019, where we raised a total of P6.3 billion. These are all part of the P40-billion peso bond program,” he said yesterday.
Possible investors are required to have a minimum investment of P500,000, with increments of P100,000 thereafter.
The bonds are set to be issued and listed on the Philippine Dealing & Exchange Corp. next month, Feb. 4.
“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,” Mr. Alde said.
Standard Chartered Bank serves as the sole arranger and the primary selling agent of the transaction, along with PSBank, Metrobank and First Metro Investment Corp. as other authorized selling agents.
In July last year, the Ty-led thrift bank raised P6.3 billion via the maiden bond issuance of its P40-billion bond program
This issue was double its initial P3-billion plan as the order book was four times oversubscribed in just five days, which also prompted the bank to cut the offer period.
The bond program launched last year is part of the bank’s initiatives to tap alternative funding sources and target both retail and institutional investors, Mr. Alde earlier said.
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.
In nine months ended September 2019, the bank posted a P2.2-billion net income, up 8.4% year on year.
PSBank’s shares closed unchanged at P58.40 apiece on Thursday. — B.M. Laforga