By James A. Loyola Philippine Savings Bank (PSBank), the thrift banking arm of the Metrobank Group, has raised P6.3 billion from its maiden Peso Fixed Rate Bond offering versus the planned initial target issue size of P3.0 billion. In a disclosure to the Philippine Stock Exchange, PSBank said it has decided to cut short the offer period for its bond issuance to July 5, 2019 from the original July 17, 2019 due to strong demand. The 2-year Peso Fixed Rate Bonds was priced at 5.6 percent per annum with quarterly interest payments. The Bonds will be listed in the Philippine Dealing and Exchange Corporation (PDEX) on July 24, 2019. “We were overwhelmed by the market reception to our bond offering with strong interest from both institutional accounts and retail investors,” PSBank President Jose Vicente L. Alde said. He noted that, “in just 5 days, the total orderbook was 4 times oversubscribed allowing us to significantly upsize the transaction to P6.3 billion.” Alde said “this is solid proof of the trust placed in PSBank as an institution as well as the confidence of the market in the various business initiatives we have been undertaking to further the growth of the Bank.” This first tranche is part of PSBank’s P40 billion funding program. This shall give the Bank an opportunity to access long-term funding as it expands its consumer banking business. It likewise seeks to diversify the Bank’s funding base. Parties to the bond offering are: Standard Chartered Bank as Sole Arranger and Selling Agent; Metrobank and First Metro Investment Corporation as other selling agents; Philippine Dealing and Trust Corporation (PDTC) to serve as registry and paying agent of the issuance; and Development Bank of the Philippines as Trustee. For the first quarter of 2019, PSBank posted a 10.3 percent year-on-year growth in net income to P680.7 million. Its consumer loan portfolio expanded by 6.8 percent year-on-year to P159.3 billion.