PSBank raises P4.65B from bond issuance
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Tue, 14 Jan 2020 16:22:19 +0000
LISTED Philippine Savings Bank (PSBank) has raised P4.65 billion in fresh funds from the second tranche of its fixed-rate bond issuance.
In a disclosure on Tuesday, the thrift-banking arm of the Metrobank Group said it has exceeded its target of P3 billion.
Because of strong demand, it also decided to cut short the end of the offer period to January 13 from January 21 this year.
PSBank pointed out that the three-year bond, which was priced at 4.5 percent per annum, was almost two times oversubscribed.
The bond will be listed in the Philippine Dealing and Exchange Corp. on February 4, this year. Interest payments will be paid on a quarterly basis.
Standard Chartered Bank is the arranger and selling agent. Other selling agents were Metropolitan Bank and Trust Co. (Metrobank), First Metro Investment Corp. and PSBank.
The bank said Philippine Dealing and Trust Corp. will serve as the registry and paying agent of the issuance. Picazo Buyco Tan Fider and Santos as transaction counsel and Development Bank of the Philippines as trustee.
PSBank’s latest bond offering followed its maiden bond issuance in July last year, which raised P6.3 billion, more than double of the planned P3 billion.
“Both issuances will give the bank an opportunity to access long-term funding as it further expands its consumer banking business,” PSBank President Jose Vicente Alde said in a statement.
As of the third quarter of 2019, the bank registered P2.2 billion in net income and P232.0 billion in resources — strong financial results supported by a 9.3-percent growth in core revenues, composed of interest income and fee-based income.
Its total capital adequacy ratio was at 17.4 percent, while its common equity tier 1 ratio was at 16.6 percent.
PSBank shares rose by P1.10 or 1.93 percent to end at P58.20 each on Tuesday.