PSBank puts P500M in PLDT’s P5B facility
Posted on April 7th, 2009
“Joining loan syndications of selected large corporations complements our growing consumer loans portfolio. And we believe in PLDT’s commitment to further develop the telecommunications landscape in the country,†PSBank president Pascual Garcia III said.
This statement was issued by the Garcia after the Philippine Savings Bank (PSBank) placed P500 million in Philippine Long Distance Telephone Co.’s (PLDT) fixed-rate notes issued in February. This brings to P2.1 billion the total loans extended by the thrift bank to big-name companies in a span of three months.
Other loans granted by the country’s second-largest thrift bank include P500-million loan to Ayala Land Inc., P600-million loan to Manila Electric Co., and the biggest corporate loan it has extended so far which is the P1-billion contribution to a P5-billion, five-year note facility for Smart Communications Inc., the profitable mobile-phone of PLDT.
With its accommodation to PLDT, PSBank, which is 76-percent owned by the Metropolitan Bank & Trust Co., (Metrobank), joined the other 14 financial institutions in the P5-billion note facility for PLDT.
In February, the country’s largest phone company sold five-, seven-, and 10-year notes to raise the needed P5 billion funds to finance its capital expenditures. This was arranged by the investment banking arm of Metrobank, the First Metro Investment Corp.
Garcia, speaking for PSBank said, it was maintaining a positive outlook on its business targets in spite of the slowdown in economy. The company expects an 11 percent growth in its deposits and a 9 percent expansion in its loan portfolio this year.
At the end of 2008, PSBank has a total of 164 branches. To achieve its targets, the bank plans to put up additional 100 automated teller machines (ATM) and open eight more branches in key provinces.
