PSBank launches P3B in debt notes

MANILA, Philippines—Philippine Savings Bank, the thrift bank arm of the Metrobank group, launched on Friday a P3-billion offering of debt notes qualifying as Tier 2 or supplementary capital.

PSBank’s Tier 2 notes, which will have a tenor of 10 years although the bank has an option to redeem them on the fifth year, are being offered at an indicative interest rate of 5.875 percent per annum. Interest payment will be made on a quarterly basis.

The offering started on Friday and will run until Feb. 16 unless adjusted, PSBank chief finance officer Perfecto Ramon Dimayuga Jr. disclosed to the Philippine Stock Exchange.  Target issuance is on Feb 24.

ING Bank N.V. acts as the arranger and selling agent while Multinational Investment Bancorporation was mandated as a market maker and selling agent.

Subscription to the Tier 2 offering is open for a minimum denomination of P500,000 with additional denominations of P100,000.

Taking advantage of ample liquidity in the financial system, PSBank launched this Tier 2 offer to boost its cash hoard for expansion, such as for prospective acquisitions.

PSBank has obtained a triple-A credit rating from the Philippine Rating Services Corp. for this offering.

Obligations rated by “PRS Aaa,” the highest rating in PhilRatings’ scale, are deemed of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is considered as “extremely strong.”

In a recent statement, PhilRatings 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 has been pursuing a strong growth strategy in recent years, while maintaining its focus on the consumer retail markets.