Philippine Savings Bank (PSBank) has raised P3.375 billion by selling long-term negotiable certificates of time deposits (LTNCTD) to support business expansion and diversify its source of funding.
In a statement on Monday, the thrift bank arm of the Metrobank Group said its first LTNCTD issuance attracted good demand from clients.
“Our LTNCTDs, which were priced at 3.5 percent, gathered a respectable response from our clients resulting in additional funds raised from our initial target of P3 billion,” said PSBank President Vicente Cuna Jr.
PSBank said retail investors were able to invest through 200 PSBank branches nationwide as well as First Metro Investment Corp and Metropolitan Bank & Trust Co. as selling agents.
ING Bank served as the arranger, while PSBank partnered with the Philippine Dealing and Trust Corp. as the registry and paying agent for the transaction. Picazo Buyco Tan Fider and Santos was the legal counsel for the transaction.
“This offering reflects our depositors’ confidence as we improve our business to provide our clients with the best banking experience,” Cuna said.
PSBank obtained the green light from the Bangko Sentral ng Pilipinas to issue up to P10 billion worth of LTNCTDs in tranches within one year since it was approved in December 2016.
The certificates of time deposit due in April 2022 were listed at the Philippine Dealing & Exchange Corp. on Monday, allowing investors to trade the securities in the secondary market.
Like regular time deposits, negotiable certificates offer higher interest rates and relatively longer maturities. These are also covered by the Philippine Deposit Insurance Corp. for up to P500,000 per depositor.
PSBank posted a net income P1.9 billion as of September 2016, up 7.7 percent from a year earlier.