The Market Monitor Minding the Nation's Business
Philippine Savings Bank (PSBank) said its long-term negotiable certificates of time deposits (LTNCTDs) attracted good demand from clients, adding that it was a reflection of confidence to the bank.
The thrift bank arm of the Metrobank Group raised P3.375 billion from its first ever LTNCTD issuance.
“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,” PSBank President Vicente R. Cuna Jr. said.
He said the proceeds of the LTNCTD sale will support PSBank’s business expansion and diversify its funding sources.
Retail investors were able to invest through 200 PSBank branches nationwide and through its selling agents, Metropolitan Bank & Trust Co. and First Metro Investment Corp and ING Bank for the float. ING Bank also served as the bank’s arranger.
PSBank also partnered with Philippine Dealing and Trust Corp. to serve as the registry and paying agent of the issuance; and Picazo Buyco Tan Fider and Santos as the transaction counsel.
“This offering reflects our depositors’ confidence as we improve our business to provide the best banking experience to our clients,” Cuna added.
The certificates of time deposit due in April 2022 were listed at the Philippine Dealing & Exchange Corp. (PDEX) last January 30.
LTNCTDs, like regular time deposits, offer higher interest rates and have relatively longer maturities.
The Certificates of Time Deposit are also covered by the Philippine Deposit Insurance Corp. (PDIC) for up to P500,000 per depositor, subject to PDIC rules.
PSBank posted a net income P1.9 billion as of September 2016, which was 7.7 percent higher than the net earnings booked in the same period last year. RIZA LOZADA