PSBank head office
MANILA, Philippines–Thrift bank Philippine Savings Bank has launched a P3-billion local bond offering, marking its debut into the peso-denominated bond market.
The two-year bonds were priced to yield a fixed rate of 5.6 percent per annum. Interest payments will be made every quarter and full principal paid out at maturity in 2021.
The maiden bond offering of Metrobank’s thrift bank arm started on July 1 and will run until July 17.
“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,” PSBank president Jose Vicente Alde said in a disclosure to the Philippine Stock Exchange on Tuesday.
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“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 offering calls for a minimum investment of P500,000 and in multiples of P100,000 thereafter.
