PSBank raising P8 billion via stock rights offer

MANILA, Philippines — Philippine Savings Bank (PSBank) is raising as much as P8 billion through the sale of shares to existing shareholders in the first quarter of next year.

In a disclosure, PSBank president Jose Vicente Alde said proceeds of the fund raising activity approved by its board of directors would support the expected growth of the bank.

“Timing and size of the transaction are subject to other details such as the offer price and are subject to receipt of regulatory approvals as well as market and other conditions,” Alde said.

The thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank) plans to issue a maximum of 184.75 million common share equivalent to the remaining unissued shares from its authorized capital stock or approximately P8 billion in fresh capital.

PSBank has tapped First Metro Investment Corp. (FMIC) as issue manager and underwriter, Picazo Buyco Tan Fider and Santos law offices as legal counsel, and Metrobank Trust Banking Group as stock transfer agent.

The country’s second largest thrift bank in terms of assets has lined up several fund raising activities to further boost its consumer banking business.

It has announced plans to issue medium-term fixed or floating rate notes worth as much as P10 billion to access medium-term and stable funding as it further expands its consumer banking segment.

PSBank has also launched a P20 billion long-term negotiable certificates of time deposits program where it has so far raised P5.1 billion last August.

Earnings of PSBank rose by 14.7 percent to P1.35 billion in the first half from P1.18 billion in the same period last year. Its total resources climbed by 7.4 percent to P134.76 billion as of end-June.

Its parent firm, Metrobank, has also been undertaking a series of fund raising activities to diversify the maturity profile of funding sources and support business expansion plans of the Ty-led bank.

Last April Metrobank successfully raised P60 billion from the sale of new shares to existing shareholders led by GT Capital Holdings through a stock rights offering.