PSBank raises P3.37B from issuance of debt paper

The Metrobank group’s thrift bank arm Philippine Savings Bank has completed a P3.37-billion fund-raising from a maiden offering of high-yield deposit notes, upsizing its issuance to meet brisk demand from the market.

The offering of long-term negotiable certificates of deposit (LTNCDs) attracted good demand from clients, the bank disclosed to the Philippine Stock Exchange on Tuesday.

Proceeds of the LTNCD sale are seen to support PSBank’s business expansion and diversify its funding sources.

“Our LTNCDs, which were priced at 3.5 percent, gathered a respectable response from our clients resulting in additional funds raised from our initial target of P3 billion,” PSBank president Vicente Cuna Jr. said in a statement.

In its disclosure, the bank reported that retail investors were able to invest through 200 PSBank branches nationwide and through its selling agents, Metropolitan Bank and Trust Co. and First Metro Investment Corp and ING Bank. ING Bank also served as the bank’s arranger.

Philippine Dealing and Trust Corp. served as the registry and paying agent of the issuance while Picazo Buyco Tan Fider and Santos acted as the transaction counsel.

“This offering reflects our depositors’ confidence as we improve our business to provide the best banking experience to our clients,” Cuna said.

The certificates of time deposit due in April 2022 were listed on the Philippine Dealing and Exchange Corp. last Jan. 30, allowing investors to trade the securities in the secondary market.

LTNCDs, like regular time deposits, offer higher interest rates and have relatively longer maturities. The certificates of time deposit are also covered by the state-owned Philippine Deposit Insurance Corp. (PDIC) for up to P500,000 per depositor, subject to PDIC rules.

PSBank posted a net income P1.9 billion as of September 2016, 7.7-percent higher than the net earnings booked in the same period last year.

In the last five years, PSBank expanded its loan book at a double-digit pace and the same trend is seen to continue this year. —DORIS DUMLAO-ABADILLA