PSBank eyes at least P3 B from initial issue of bonds

MANILA, Philippines — Listed Philippine Savings Bank (PSBank) wants to raise at least P3 billion from the ongoing issuance of peso fixed rate bonds to finance the bank’s expansion program.

PSBank president Jose Vicente Alde said proceeds from the fund-raising exercise would support the bank’s initiatives in expanding its consumer business.

According to Alde, the bank is always on the lookout for ways to provide innovative banking solutions and services to its clients.

“We have always been on the lookout for opportunities to diversify our funding sources. Given market developments, we believe that this bond issuance is properly timed to provide potential institutional and individual investors with an alternative investment to lock-in their funds at a high yield and for a relatively shorter tenor,” Alde said.

The two-year bonds were priced at 5.6 percent per annum with interest payments made every quarter and full principal paid out at maturity in 2021. Offer period started Monday and is set to end by July 17.

Authorized selling agents are PSBank, Metrobank and First Metro Investment Corp. (FMIC). Standard Chartered is the sole arranger and likewise selling agent for the bond issuance.

Last March, the board of directors of the bank approved a planned P40 billion bond issuance in multiple tranches.

PSBank lined up several fund raising activities to further boost its consumer banking business.

PSBank recently raised P8 billion via the sales of shares to existing shareholders to further solidify its capital adequacy and financial strength.

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 program where it has so far raised P5.1 billion last August.

PSBank recently launched an innovative remittance service PaSend which enables its mobile users to send cash to anyone 24/7 for withdrawal in any PSBank or Metrobank ATM nationwide.