PSBank raises P8B from stock rights offer

PHILIPPINE Savings Bank (PSBank) on Thursday said it raised P8 billion from a recently completed stock rights offer, which will be used to support the bank’s growth and strengthen capital adequacy.

In a regulatory filing Thursday, the thrift banking arm of Metropolitan Bank & Trust Co. (Metrobank) said it sold 142.9 million common shares priced at P56 apiece during Jan. 7-11 offer period.

The rights shares will be listed on the Philippine Stock Exchange today (Jan. 18).

Eligible shareholders were entitled to subscribe to a share for every 1.68177 common shares as of record date Dec. 20.

The rights offering saw an oversubscription, as it was taken up entirely by the bank’s existing shareholders.

PSBank said the fund-raising activity will enable the thrift lender to sustain its loan growth momentum and support its asset growth, particularly on consumer loans.

In a previous interview, PSBank President Jose Vicente L. Alde said it expects “better” loan growth this year compared with 2018 on the back of softer loan rates.

“The additional capital from the offer will strengthen its CET1 (common equity tier 1) capital, further solidifying the bank’s capital adequacy and financial strength,” PSBank added.

First Metro Investment Corp. served as the sole issue manager, bookrunner as well as lead underwriter of the stock rights offer.

Local banks have been conducting various fund-raising activities to meet the tighter risk management requirements by the central bank under the international Basel 3 standard, which took effect this year.

Last September, the Ty-led savings bank announced it will issue medium-term notes amounting to P10 billion, to “give PSBank an opportunity to access medium-term and stable funding as the bank further expands its consumer banking business.”

Prior to this, it also raised P5.08 billion in August through the issuance of long-term negotiable certificates of time deposits, which carry a 5% coupon.

PSBank booked a P2.03-billion net income in the first nine months of 2018, 8.1% higher than the P1.88 billion logged in a comparable year-ago period, supported by sustained loan growth and higher fee-based revenues. —