City Savings raises P5 billion via notes issue

MANILA, Philippines — City Savings Bank Inc. (CitySavings) raised P5 billion through the issuance of debt papers to beef up its lending portfolio, extend the maturity of its liabilities, and finance its general corporate requirements.

Lorenzo Ocampo, president and chief executive officer at CitySavings  said the thrift bank would continue to grow and evolve as it continues to introduce more services.

“For nearly six decades CitySavings has built a trusted reputation. We will continue to grow and evolve to become the finest mass market bank in the Philippines as we introduce more innovative solutions for a seamless customer experience,” Ocampo said.

The fund raising activity received strong demand from financial institutions with oversubscription in demand, making the bank well-positioned for future capital market deals.

Of the corporate notes issued, P1.5 billion will mature in three years and the other P3.5 billion in five years.

CitySavings’ return to the domestic market was undertaken amid a favorable interest rate environment and was priced at the lowest end of the pricing range.

BDO Capital & Investment Corp. served as lead arranger and bookrunner, while state-run Development Bank of the Philippines, Philippine National Bank and Robinsons Bank acted as co-arrangers.

Ed Francisco, president at BDO Capital, said CitySavings is a key player in the Philippine banking system as it provides financing to public educators who in turn play a critical part in molding and strengthening the country’s future prospects.

“We look forward to supporting CitySavings in its future endeavours which we see as our contribution to strengthening our social infrastructure,” Francisco said.

CitySavings is ranked fourth largest thrift bank in the country in terms of assets with P88.83 billion and second in terms of capital with P14.99 billion as of end-June.

CitySavings was incorporated in Cebu City in 1965 as the Cebu City Savings and Loans Association. It has since expanded its branch network and business operations, establishing itself as a major player in the country’s thrift banking industry and earning a reputation for outstanding operational efficiency and exemplary performance and service to its clients.

In 2013, Aboitiz-led Union Bank of the Philippines in 2013 took over the bank and has transformed it into a leader in offering salary loans to public school teachers and employees of the Department of Education.