MANILA, Philippines - Sterling Bank of Asia has raised P500 million from the issuance of 10-year Tier 2 notes this week, the bank said in a statement.
The notes carry a fixed interest rate of 6.125 percent payable quarterly, although Sterling Bank has the option to redeem them on the fifth year, subject to Bangko Sentral ng Pilipinas (BSP) approval.
“The Monetary Board of the Bangko Sentral ng Pilipinas gave Sterling Bank the authority to issue Tier 2 notes under MB Resolution 30 issued Jan. 5 this year,” it said.
Sterling Bank president and chief executive Lamberto R. Villena said proceeds from the Tier 2 notes issue would be used to fund the bank’s expansion.
“It will be used to grow its loan portfolio to take advantage of the higher demand from businesses and consumers,” Villena added.
In the first three months of 2012, the thrift bank reported a seven percent growth in net earnings, or from P117.92 million in the first quarter of 2011 to P126.311 million, driven mainly by higher interest income on loans and bigger trading gains.
Interest income amounted to P1.7 billion last year, a 20 percent increase from P1.42 billion in 2010. Trading gains amounted to P348.82 million, 47 percent higher than the P237 million reported a year ago.
Assets stood at P26.77 billion at the end of 2011, a 13-percent expansion from P23.64 billion a year earlier. Loans totaled P14.69 billion while deposits amounted to P23.89 billion.
The bank is among 31 thrift banks with an FCDU authority, 14 with trust authority and one of three with a Type 3 derivatives license. It is also one of only two thrift banks granted an import letter of credit license by the BSP and is also the first bank in the country to issue Visa debit and prepaid cards using the EMV chip technology named ShopNPay.