By JAMES A. LOYOLA
Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, has decided to cut short the offer period for the second tranche of its Peso Fixed Rate Bonds to from January 21, 2020 due to strong demand.
In a disclosure to the Philippine Stock Exchange, the bank said it raised ₱4.65 billion in Peso Fixed Rate Bonds versus the planned initial offer of ₱3.0 billion.
The 3-year Peso Fixed Rate Bonds which was priced at 4.5 percent per annum were almost 2 times oversubscribed. Interest payments will be paid on a quarterly basis.
This second tranche is part of the bank’s ₱40.0-billion funding program. Last July 2019, PSBank was able to raise ₱6.3 billion for its first tranche.
Both issuances will give the Bank an opportunity to access long-term funding as it further expands its consumer banking business.
The Bond will be listed in the Philippine Dealing and Exchange Corporation (PDEx) on February 4, 2020.
Parties to this transaction are Standard Chartered Bank as Arranger and Selling Agent. The other selling agents were Metrobank, First Metro Investment Corporation and PSBank.
Philippine Dealing and Trust Corp (PDTC) will serve as the registry and paying agent of the issuance. Picazo Buyco Tan Fider and Santos as transaction counsel and Development Bank of the Philippines as Trustee.