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PHILIPPINE SAVINGS Bank (PSBank) raised P6.3 billion in fresh funds via two-year fixed-rate bonds as it saw robust demand from investors.
In a regulatory filing on Thursday, the thrift lending arm of Metropolitan Bank & Trust Co. (Metrobank) Group said it raised P6.3 billion through its maiden peso bond offering, more than double its initial P3-billion program.
Due to “strong demand,” PSBank had to cut short the offer period to July 5 from the original July 17.
The two-year instruments carry a coupon rate of 5.6% per annum to be paid quarterly until 2021.
“We were overwhelmed by the market reception to our bond offering with strong investment from both institutional accounts and retail investors,” Jose Vicente L. Alde, president of PSBank, was quoted as saying in the statement. “In just five days, the total order book was four times oversubscribed, allowing us to significantly upsize the transaction to P6.3 billion.”
The fund-raising activity marks the first tranche of PSBank’s P40-billion bond program, which will be offered in multiple tranches.
The raised funds will be used by the bank to “access long-term funding as it expands its consumer banking business” and to diversify its funding base.
“This is solid proof of trust placed in PSBank as an institution as well as the confidence of the market in the various business initiatives we have been undertaking to further the growth of the bank,” Mr. Alde added.
Standard Chartered was tapped to be the sole arranger of the transaction. It also served as a selling agent alongside PSBank, Metrobank and First Metro Investment Corp.
The IOUs are scheduled to be listed on the Philippine Dealing & Exchange Corp. on July 24.
In January, the bank raised P8 billion via a stock rights offer, selling 142.9 million common shares priced at P56 apiece.
PSBank also raised P5 billion and P3 billion last year through offers of long-term negotiable certificates of deposit and medium-term fixed rate notes, respectively.
The lender booked a P680.7-million net income in the first quarter, up 10.3% from the same period in 2018, driven by interest income growth and expense management.
Local debt watcher Philippine Ratings Services Corp. affirmed its “PRS Aaa (corp.)” issuer rating on PSBank last month, indicating continued growth in core interest income and strong market position.
PSBank shares gained 25 centavos or 0.43% to close at P58.40 each on Thursday. — Karl Angelo N. Vidal