PSBank eyes P3B from bond sale

The Philippine Savings Bank (PSBank) is set to generate at least P3 billion from fixed-rate bonds to finance the lender’s expansion plans.

In a regulatory filing submitted by senior assistant manager Mary Karen Perez, the bank said the public offer period started on Monday, July 1, and will end on July 17, Wednesday.

The two-year bonds are priced at 5.6% per annum, with quarterly interest payments and the full principal paid out in maturity in 2021.

“We have always been on the lookout for opportunities to diversify our funding sources. Given market developments, we believe that this bond issuance is properly timed to provide potential institutional and individual investors with an alternative investment to lock-in their funds at a high yield and for a relatively shorter tenor,” said PSBank president Jose Vicente Alde.

“Proceeds from the fund-raising exercise will support PSBank’s initiatives in expanding its consumer business as the bank gears up to provide innovative banking solutions and services,” he added.

The latest offer requires a P500,000 minimum investment, and in multiples of P100,000 thereafter.

The bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on July 24, 2019, with PSBank, Metrobank, and First Metro Investment Corp. as authorized selling agents.

Standard Chartered has also been tapped to act as the sole arranger and selling agent for the bond sale. —Jon Viktor Cabuenas/VDS, GMA News