PSBank redeems P3-B debt

Philippine Savings Bank (PSBank) received the green light from the Bangko Sentral ng Pilipinas (BSP) to redeem P3 billion worth of debt notes qualifying as Tier 2 capital.

PSBank senior vice president and chief finance officer Perfecto Ramon Dimayuga Jr. said in a disclosure to the Philippine Stock Exchange (PSE) the thrift bank arm of the Metrobank Group is exercising the call option on its unsecured subordinated debt – Tier 2 notes issued in 2012.

Dimayuga said the exercise of the call option is allowed by BSP regulations after five years from the date of issuance or on Feb. 21, 2017.

He added the bank’s Board of Directors has authorized PSBank president Vicente Cuna Jr. to sign, execute and deliver any and all documents and to do and perform any and all acts as may be necessary to carry into effect the intents and purposes behind the exercise of the call option.

By exercising its call option on the Tier 2 notes, the banking arm of taipan George Ty would avoid paying steeper interests in servicing the notes until maturity in 2017.

PSBank is also raising P10 billion from the issuance of longterm negotiable certificates of time deposits (LTNCTDs) amid the strong liquidity in the market as well as the low interest rate environment in the country.

The final terms of the issuance including offering period and interest rates would depend on market conditions.

Earnings of the country’s second largest thirft bank in terms of assets and capital inched up 2.2 percent to P1.2 billion in the first half of the year from P1.1 billion in the same period last year backed by revenues from consumer loans, investments and feebased income.