PSBank starts LTNCD offering
PHILIPPINE SAVINGS Bank (PSBank) yesterday started its offering of up to P3 billion worth of peso-denominated long-term negotiable certificates of time deposits (LTNCDs), aimed to boost the bank’s capital and fund its general operations.
In a disclosure to the local bourse on Tuesday, the thrift banking arm of Ty-led Metropolitan Bank & Trust Co. (Metrobank) said the deposit instruments will have a life of five years and three months and a coupon rate of 3.5% annually.
The offer is expected to run up to Jan. 23, while the issue date is set on Jan. 30.
The sole arranger and selling agent for PSBank’s LTNCD offer is ING Bank N.V. Meanwhile, PSBank will also act as a selling agent along with other Ty- led firms Metropolitan Bank & Trust Co. and First Metro Investment Corp.
Officials have previously said that proceeds of the peso-denominated notes will be used to fund the bank’s general operations and for liability management.
LTNCDs, like the regular time deposits, offer higher interest rates. Unlike time deposits, however, LTNCDs cannot be pre-terminated. They are called “negotiable” because they can be sold at the secondary market.
PSBank had said in a disclosure to the local bourse in September that its board of directors approved the issuance of P10 billion in LTNCDs with a five-year tenor through one or more tranches over a year.
Last month, PSBank President Vicente R. Cuna, Jr. said that save for the initial tranche of P3 billion, the rest of the approved P10-billion LTNCD issue will be subject to market conditions.
In the third quarter of 2016, PSBank’s income rose to P712.11 million from the P602.47 million recorded in the same period in 2015, driven by higher interest income from loans and trading gains.
Shares in PSBank were unchanged at P90.30 apiece on Tuesday. •