PSBank Plans P2 Billion Bond Sale to Fund Expansion

Philippine Savings Bank (PSBank), the thrift banking subsidiary of the Metrobank Group, announced its intention to raise a minimum of P2 billion through a bond issuance to support its expansion efforts. The two-year bonds will carry an annual yield of 5.875 percent, with a minimum investment required at P100,000 and additional subscriptions available in increments of P10,000.

The offering period is scheduled from August 4 to August 8, and the bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on August 18. In a statement, PSBank noted that the net proceeds will provide long-term funding to back its growth initiatives and help diversify its sources of capital.

First Metro Investment Corp. and ING Bank NV Manila Branch have been appointed as arrangers for the transaction, while PSBank, First Metro, ING, and Metropolitan Bank and Trust Co. will act as selling agents.

This issuance marks the third tranche under PSBank's P40-billion bond program. The bank previously raised P6.3 billion in July 2019 and P4.65 billion in February 2020 through the first two tranches.

PSBank's move comes amid the Bangko Sentral ng Pilipinas' ongoing monetary easing cycle, which tends to enhance the appeal of bonds by making their fixed yields more attractive relative to lower benchmark rates.

The bank's creditworthiness remains robust, as reflected by its issuer credit rating of PRS Aaa (corp.) with a stable outlook from Philippine Rating Services Corp., indicating a very strong capacity to meet financial obligations with the expectation that this rating will be maintained over the next year.

PSBank reported a 1 percent increase in first-quarter net income to P1.21 billion, largely driven by a 9 percent rise in core revenues to P3.81 billion. The bank attributed this growth to strong consumer loan demand fueled by improving macroeconomic conditions and heightened consumer spending power.