CitySavings makes P5B in debt paper offer

The Aboitiz group’s thrift bank arm City Savings Bank Inc. (CitySavings) has raised P5 billion from the sale of debt paper to selected institutional investors.

Proceeds from the offering of corporate notes—of which P1.5 billion will mature in three years and P3.5 billion in five years—were meant to support the expansion of earning assets in the coming years.

“We look forward to supporting CitySavings in its future endeavors, which we see as our contribution to strengthening our social infrastructure,” said CitySavings president and CEO Lorenzo Ocampo.

“We believe that CitySavings is a key player in the Philippine banking system, as it provides financing to our public educators who in turn play a critical part in molding and strengthening our country’s future prospects,” said Eduardo Francisco, president of BDO Capital & Investment Corp., which acted as lead arranger and bookrunner for the issuance.

The Development Bank of the Philippines, Philippine National Bank and Robinsons Bank were coarrangers to the issuance.

The fresh funds are seen to expand CitySavings’ loan portfolio, extend the maturity profile of its liabilities and cover other general corporate requirements.

CitySavings was incorporated in Cebu City in 1965 as the Cebu City Savings and Loans Association. It has since expanded its branch network and business operations, becoming a major player in the country’s thrift banking industry. INQ