PSBank raises P6.3 B from fixed rate bonds

MANILA, Philippines — Listed Philippine Savings Bank (PSBank) raised P6.3 billion after completing its maiden peso fixed rate bond issuance early this month, more than double the planned initial offering of P3 billion.

PSBank president Jose Vicente Alde said the thrift banking arm of Metropolitan Bank & Trust Co. (Metrobank) was forced to cut short the offer period to July 5 from the original date of July 17 due to strong demand.

“We were overwhelmed by the market reception to our bond offering with strong interest from both institutional accounts and retail investors. In just five days, the total order book was four times oversubscribed allowing us to significantly upsize the transaction to P6.3 billion,” Alde said.

The two-year peso fixed rate bonds that fetched 5.6 percent per annum with quarterly interest payments would be listed on the platform of the Philippine Dealing and Exchange Corp. (PDEx) on July 24.

“This is solid proof of the trust placed in PSBank as an institution as well as the confidence of the market in the various business initiatives we have been undertaking to further the growth of the bank,” Alde said.

Alde said the fund raising activity is part of PSBank’s P40 billion funding program to give the bank an opportunity to access long-term funding as it expands its consumer banking business. “It likewise seeks to diversify the Bank’s funding base,” he said.

Standard Chartered Bank served as sole arranger and selling agent.

Metrobank and First Metro Investment Corp. (FMIC) as other selling agents, Philippine Dealing and Trust Corp. (PDTC) as registry and paying agent of the issuance, Picazo Buyco Tan Fider and Santos as transaction counsel, and state-run Development Bank of the Philippines as trustee.

PSBank recently raised P8 billion via the sales of shares to existing shareholders to further solidify its capital adequacy and financial strength.

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.