PSBank raises P8 billion from stock rights offer

MANILA, Philippines — Listed Philippine Savings Bank (PSBank) raised P8 billion via the sales of shares to existing shareholders to further solidify its capital adequacy and financial strength.

The thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank) said the offer was taken up entirely by existing shareholders, with support seen across the shareholder base, resulting in an oversubscription.

PSBank said the successful stock rights offering represents a vote of confidence in the listed bank, its vision, and business strategies.

“PSBank foresees that the projected robust growth of the Philippines will continue to support loan expansion across the various segments of the economy. Thus, the capital raising exercise will enable the bank to sustain its loan growth momentum, supporting its expected asset growth, primarily on consumer loans,” the bank said.

PSBank president Jose Vicente Alde said proceeds from the fund raising activity would be used to strengthen the bank’s common equity Tier 1 (CET1) capital

In terms of specific application, the net proceeds will support the bank’s expected asset growth primarily on consumer loans.

PSBank sold 142.86 million shares to existing shareholders at P56 per share from Jan. 7 to 11. Shareholders were entitled to subscribe to 1.68177 shares for every share held.

The country’s second largest thrift bank in terms of assets has lined up several fund raising activities to further boost its consumer banking business.

It has announced plans to issue medium-term fixed or floating rate notes worth as much as P10 billion to access medium-term and stable funding as it further expands its consumer banking segment.

PSBank has also launched a P20 billion long-term negotiable certificates of time deposits (LTNCD) program where it has so far raised P5.1 billion last August.