PSBank raises P3B via 10-year notes sale

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03:18 AM February 13th, 2012

February 13th, 2012 03:18 AM

Philippine Savings Bank, a unit of the Metrobank group, has raised P3 billion in fresh funds for expansion through the sale of 10-year debt notes qualifying as tier 2 or supplementary capital.

In a statement, PSBank said its 10-year subordinated notes were priced at 5.75 percent a year, tighter than the original guidance of 5.875 percent due to strong demand.

PSBank closed the offer period for the notes on Friday, a week earlier than target, citing “overwhelming” demand. The book was more than double the offer size, which allowed the bank to price the notes below the initial pricing guidance.

The bank set the issue date for the tier 2 notes due on Feb. 20, 2022.

“Proceeds from the notes will be used to finance PSBank’s asset growth and further strengthen its capital base,” the bank said.

ING Bank NV acted as arranger for the notes. ING Bank NV and Multinational Investment Bancorporation were selling agents while PSBank and First Metro Investment Bancorporation were limited selling agents.

Development Bank of the Philippines and Standard Chartered Bank were named public trustee and registry, and paying agent for the notes, respectively.—Doris C. Dumlao

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