PSBank advances redemption of notes

LISTED Philippine Savings Bank ( PSBank) plans to redeem ahead of their maturity date P3 billion worth of unsecured subordinated debt notes qualifying as Tier- 2 capital.

In a disclosure on Monday, the Ty- led thrift lender said its board approved last Friday to exercise the call option on these notes, which has a term of 10 years and three months.

The option is subject to the approval of the Bangko Sentral ng Pilipinas.

The notes were issued in May 2014 at a coupon rate of 5.5 percent a year. Although these will mature in August, 2024, PSBank can opt to redeem them as early as August this year.

The bank said upon issuing the notes that proceeds from them would be used to strengthen its capital base and allow it to expand its banking operations.

Philippine Ratings Corp. ( Philratings) had given the notes an “PRS Aaa” rating, which is the highest it can assign to an obligator. Notes rated as such are of the highest quality with minimal credit risk, according to Philratings.

The Metropolitan Bank and Trust Co. subsdiary previously reported that its net income increased by 8.1 percent to P2.03 billion in the first nine months of 2018 from P1.88 billion in the same period in 2017 on the back of sustained loan growth and higher feebased revenues.

Shares of PSBank closed flat at P59 each on Monday.

EIREENE JAIREE GOMEZ