MANILA, Philippines – Philippine Savings Bank (PSBank) announced on Friday that it is offering Tier 2 notes to the public worth P3 billion.
The bank said it has obtained an issuer rating of PRS Aaa by Philippine Ratings Corporation (Philratings) and a separate issue rating of PRS Aaa for its Tier 2 notes from Philratings.
PSBank’s offer runs from May 9 until May 16, 2014.
The bank said its Tier 2 notes will have a maturity of 10.25 years, with a call option after 5.25 years.
“The issuance has a loss absorption provision in compliance with Bangko Sentral ng Pilipinas (BSP) guidelines on regulatory capital,” it added.
PSBank said it will use the proceeds from the notes to strengthen its capital base and allow it to expand its banking operations.
Tapped as arranger and selling agent is ING Bank, selling agent and market maker is Multinational Investment Bancorporation, while limited selling agents are PSBank and First Metro Investment Corporation.
The Philippine Depository and Trust Corporation are tapped as registrar and paying agent, and Development Bank of the Philippines as trustee.
Tier 2 note is a debt instrument, which is eligible as compliance to globally-accepted capital adequacy requirements since it is counted as supplementary capital.