City Savings Bank, Inc. (CitySavings or the Bank) issued on Tuesday, December 22, 2020, a total of Php 5 billion of Corporate Notes, of which Php 1.5 billion will mature in three years and Php 3.5 billion will mature in five years. CitySavings’ Notes issuance was undertaken amidst a favorable interest rate environment and was priced at the lowest end of the pricing range.
The proceeds will be used to finance the Bank's asset expansion, particularly its loan portfolio, to extend the maturity profile of its liabilities, and to fund the Bank's other general corporate requirements.
CitySavings was incorporated in Cebu City in 1965 as the Cebu City Savings and Loans Association. It has since expanded its branch network and business operations, establishing itself as a major player in the country's thrift banking industry and earning a reputation for outstanding operational efficiency and exemplary performance and service to its clients. It was acquired by Union Bank of the Philippines in 2013. Since then, the Bank has maintained its leading market position in offering salary loans to Department of Education public school teachers and employees and continued its path to growth, successfully completing key acquisitions, growing its nationwide network to 149 branches, and expanding its product offerings to include pension loans and motorcycle loans to the Philippine public. The Bank has kept true to its tagline that "Simple is Good" and brand promise of "Straightforward Banking", leading the thrift banking industry by simplifying and streamlining loan products and strengthening operational efficiencies while focusing on customer engagement for the benefit of its clients. For this, the Bank has been recognized by Global Business Outlook as the Fastest Growing Savings Bank - Philippines in 2019.
"We believe that CitySavings is a key player in the Philippine banking system, as it provides financing to our public educators who in turn play a critical part in molding and strengthening our country's future prospects", said Ed Francisco, President of BDO Capital & Investment Corporation. He further added, "we look forward to supporting CitySavings in its future endeavours which we see as our contribution to strengthening our social infrastructure."
President and CEO Lorenzo Ocampo said, “For nearly six decades CitySavings has built a trusted reputation. We will continue to grow and evolve to become the finest mass market bank in the Philippines as we introduce more innovative solutions for a seamless customer experience.”
The offer received strong demand from financial institutions with oversubscription in demand, making the Bank well-positioned for future capital market deals.
BDO Capital & Investment Corporation acted as Lead Arranger and Bookrunner with Development Bank of the Philippines, Philippine National Bank, and Robinsons Bank acting as Co-Arrangers to the issuance."
THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) UNDER THE SECURITIES REGULATION CODE OF THE PHILIPPINES AND ITS IMPLEMENTING REGULATIONS (“SRC”). ANY FUTURE OFFER OR SALE OF THE NOTES IS SUBJECT TO THE REGISTRATION REQUIREMENTS UNDER THE SRC UNLESS SUCH OFFER OR SALE IS MADE UNDER CIRCUMSTANCES IN WHICH THE NOTES QUALIFY AS EXEMPT SECURITIES OR SUCH OFFER OR SALE QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE SRC.
THE NOTES ARE SECURITIES EXEMPT FROM REGISTRATION UNDER SECTION 9.1(e) OF THE SECURITIES REGULATION CODE (SRC) AND SECTION 9.1.1 OF THE 2015 IMPLEMENTING RULES OF THE SRC AND AS SUCH ARE NOT REQUIRED TO BE REGISTERED UNDER THE PROVISIONS OF THE SRC BEFORE THEY CAN BE SOLD OR OFFERED FOR SALE OR DISTRIBUTION IN THE PHILIPPINES.