PHILIPPINE Savings Bank (PSBank) has ended its peso bond offering after just one day amid strong investor demand.
The thrift unit of Metropolitan Bank & Trust Co. (Metrobank) has closed its offer of two-year peso-denominated fixed-rate bonds, which marked its return to the domestic debt market after five years.
“The initial offer period of August 4 to 8 was cut short and closed within a day due to strong investor demand from both institutional and retail clients. The total orderbook was more than six times oversubscribed, indicating the market’s continued confidence in the bank,” it said in a disclosure to the stock exchange on Tuesday.
“The net proceeds of the issuance will provide the bank with access to long-term funding to support its expansion initiatives and further diversify its funding sources.”
PSBank was looking to raise at least P2 billion through the two-year papers. It has yet to announce the final issue size.
The papers will be issued and listed on the Philippine Dealing & Exchange Corp. on Aug. 18.
The bonds will make up the third tranche of PSBank’s P40-billion bond program after the P6.3-billion issuance in July 2019 and the P4.65-billion issuance in February 2020.
They have a fixed interest rate of 5.875% per annum and were sold at a minimum investment amount of P100,000 and in increments of multiples of P10,000.
First Metro Investment Corp. and ING Bank N.V. Manila Branch were the arrangers for the transaction. They also acted as selling agents together with PSBank and Metrobank.
PSBank’s net income rose by 0.59% year on year to P1.21 billion in the first quarter amid continued loan growth and lower expenses.
Its shares closed unchanged at P58.50 each on Tuesday. — Aaron Michael C.
