PSBank launches P3B bond offer

PSBank head office

MANILA, Philippines–Thrift bank Philippine Savings Bank has launched a P3-billion local bond offering, marking its debut into the peso-denominated bond market.

The two-year bonds were priced to yield a fixed rate of 5.6 percent per annum. Interest payments will be made every quarter and full principal paid out at maturity in 2021.

The maiden bond offering of Metrobank’s thrift bank arm started on July 1 and will run until July 17.

“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,” PSBank president Jose Vicente Alde said in a disclosure to the Philippine Stock Exchange on Tuesday.

“Proceeds from the fund-raising exercise will support PSBank’s initiatives in expanding its consumer business as the bank gears up to provide innovative banking solutions and services,” he added.

The offering calls for a minimum investment of P500,000 and in multiples of P100,000 thereafter.

The bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on fixed income platform July 24.

PSBank, Metrobank and First Metro Investment Corp. are the authorized selling agents.

Standard Chartered is the sole arranger and likewise selling agent for this bond issuance.

PSBank was recently given an issuer rating of PRS Aaa by local credit watcher Philippine Rating Services Corporation (PhilRatings), the highest rating on Philratings’ scale. A company rated PRS Aaa is deemed to have a “very strong capacity to meet financial commitments relative to that of Philippine corporates.” (Editor: Jonathan P. Vicente)