PSBank offers P3B deposit notes

The Metrobank group’s thrift bank arm Philippine Savings Bank is raising up to P3 billion from a fresh offering of high-yielding deposit notes, boosting funds for fast-growing lending activities.

In an official advisory, PSBank launched the offering of long-term negotiable certificates of deposits (LTNCDs) with a tenor of five years and three months. The notes will carry an interest rate of 3.5 percent per annum, to be paid on a quarterly basis.

The bank’s LTNCD offering started on Jan. 10 and will run until Jan. 23 this year.

LTNCDs are time deposits that have longer maturity and are higher-yielding than regular deposits. These instruments are negotiable and insured with the Philippine Deposit Insurance Corp. up to the maximum coverage which is currently at P500,000 per depositor.

Minimum placement is set at P50,000 and in increments of P50,000 thereafter.

The bank has tapped ING Bank as sole arranger and selling agent. Other selling agents are PSBank, affiliate First Metro Investment Corp. and parent bank Metropolitan Bank and Trust Co.

PSBank president Vicente Cuna Jr. said the thrift bank was expected to grow at a faster pace this 2017, with net profit seen to grow by a double-digit level on the back of the country’s strong economic growth momentum.

In the last five years, loans have been growing at a double-digit pace and the same trend is seen to continue this year.