MANILA: Philippine Savings Bank successfully raised P3.375 billion through the issuance of 2022 notes. The lender listed the Series 1 Long Term Negotiable Certificates of Time Deposit at the Philippine Dealing and Exchange Corp. (PDEx) Monday.
PSBank’s listing brought the total level of tradable corporate debt instruments to P646.91 billion, comprising 113 securities. The LTNCTDs have an interest rate of 3.5 percent and a maturity of five years and three months.
Proceeds of the sale would be used to support the bank’s expansion and diversify its funding sources. Though similar to time deposits, LTNCTDs have relatively longer maturities and offer higher interest rates.
LTNCTDs offer maturities of at least five years and cannot be pre-terminated by the holder. They are negotiable, however, as holders can sell their LTNCTDs to other willing buyers in the secondary market. ING Bank was the sole arranger while Metropolitan Bank & Trust Co. and First Metro Investment Corp. were the selling agents.
The bank posted a net income of P712.11 million in the third quarter of 2016, up 7.7 percent from previous year.
