Philippine Savings Bank has returned to the local bond market with an offering of three-year bonds carrying an interest rate of 4.5 percent a year.
The thrift banking arm of the Metrobank group plans to raise at least P3 billion from the new offering of fixed-rate peso bonds, which runs from Jan. 9 to 21 this year.
“We firmly believe that this bond issuance comes at a most opportune time—at the beginning of an exciting new year and decade, most especially for individual and institutional investors who are looking at new investment alternatives,” PSBank president Jose Vicente Alde said in a disclosure to the Philippine Stock Exchange on Thursday.
“As we continue to diversify our funding sources, we remain to be fully committed to upgrading our industry-leading products, services and offerings for the maximum benefit of our customers,” Alde added.
PSBank reserves the option to increase the offering in case of strong demand.
Interest payments on the bonds will be made every quarter and the full principal paid out at maturity in 2023.
Minimum investment at this PSBank peso fixed-rate bond is P500,000, with increments of P100,000 thereafter.
The bonds will be officially issued and listed on fixed income trading platform Philippine Dealing and Exchange Corp. on Feb. 4.
British bank Standard Chartered Bank is the sole arranger and the primary selling agent of the bond offer, with PSBank, Metropolitan Bank and Trust Co. and First Metro Investment Corp. as other authorized selling agents. —Doris Dumlao-Abadilla