Amid controversy, PSBank reports bond sale demand

By Coco Alcuaz, ANC

Posted at Feb 12 2012 11:59 AM | Updated as of Feb 13 2012 02:49 PM

MANILA, Philippines - Philippine Savings Bank, in the news for rebuffing impeachment court demands for Chief Justice Renato Corona's alleged dollar accounts, said it sold P3 billion of bonds and that there was P6 billion of demand for them.

In an e-mailed statement, PSBank, a unit of Metropolitan Bank and Trust Co., said it sold the bonds at a yield of 5.75 percent. It said it would use the funds to boost lending.

ING Bank was the lead arranger of the bond sale. Multinational Investment Bancorp., First Metro Investment Corp. and PSBank helped sell the securities. 

PSBank last year bought back P2 billion of 10-year bonds five years before they were due saying it was more beneficial to do so amid falling interest rates, having sold them with an interest rate of 10 percent in 2006.

PSBank President Pascual Garcia last week refused to disclose information about Corona's alleged dollar accounts to the Senate, where the chief justice is on trial after being impeached by the House of Representatives.

He cited secrecy provisions in the 1974 Foreign Currency Deposit Unit (FCDU) law.