PSBank to offer P3B in debt notes

Philippine Savings Bank, the thrift bank arm of the Metrobank group, is set to launch a P3-billion offering of debt notes qualifying as tier 2 or supplementary capital in February to boost funds for expansion.

PSBank president Pascual Garcia III said Monday that the issuance, which would be arranged by ING Bank, was tentatively scheduled for launching on February 2.

Perfecto Ramon Z. Dimayuga Jr., chief finance officer of PSBank, said the thrift bank had received written notice of approval from the Bangko Sentral ng Pilipinas on January 4 and was now completing the remaining documentary requirements for the offering of 10-year tier 2 notes.

“We want to submit all documents by Wednesday,” he said in an interview.

Taking advantage of ample liquidity in the financial system, PSBank is boosting its cash hoard for expansion, including prospective acquisitions.

PSBank has obtained a triple-A credit rating from local credit watcher Philippine Rating Services Corp. for this tier 2 offering. Obligations rated by “PRS Aaa,” the highest rating in PhilRatings’ scale, are deemed of highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is considered “extremely strong.”

In a recent statement, Philrating said the rating reflected PSBank’s strong management team and deposit generation ability, as well as its sound asset quality. The rating agency said it also considered the “still favorable, albeit moderated outlook for domestic consumer credit, where PSBank has a solid market franchise.”

It was noted that PSBank had been pursuing a strong growth strategy in recent years, while maintaining its focus on the consumer retail markets. As of end-2010, about 41 percent and 33 percent of PSBank’s loans were for auto and housing, respectively.—Doris C. Dumlao