PSBank planning to issue ₱3-B bonds

Philippine Savings Bank (PSBank), the thrift-banking arm of the Metrobank Group, is raising ₱3 billion from an issuance of Peso Fixed Rate Bonds from January 9 to 21, 2020.

With a tenor of 3 years, the bond is priced at 4.5 percent per annum, with option to upsize, with interest payments made every quarter and the full principal paid out at maturity in 2023.

This PSBank Peso Fixed-Rate Bond will require a minimum of ₱500,000 from investors, with increments of ₱100,000 thereafter. The bond will be officially issued and listed on the Philippine Dealing Exchange Corporation on February 4, 2020.

The Standard Chartered Bank is the sole arranger and the primary selling agent of the bond offer, with PSBank, Metrobank, and First Metro Investment Corporation as other authorized selling agents.

“We firmly believe that this bond issuance comes at a most opportune time — at the beginning of an exciting new year and decade, most especially for individual and institutional investors who are looking at new investment alternatives,” said PSBank President Jose Vicente L. Alde.

He noted that, “As we continue to diversify our funding sources, we remain to be fully committed to upgrading our industry-leading products, services, and offerings for the maximum benefit of our customers.”

PSBank reported a highly successful maiden bond offering in July 2019, which raised ₱6.3 billion, more than double of the planned P3 billion. In just five days, the total order book was four times oversubscribed, which led the Bank to cut the offer period short.

The bank also made impressive strides as of the third quarter of 2019, as it registered ₱2.2 billion in net income and ₱232.0 billion in resources — strong financial results supported by a 9.3 percent growth in core revenues, composed of interest income and fee-based income.