Metrobank offers Tier 2 notes for add’l capital

MANILA, Philippines - Metropolitan Bank & Trust Co. offered yesterday Tier 2 notes to raise as much P6.5 billion in additional capital.

This is part of the bank’s approved issuance of up to $500 million either in dollars of peso equivalent.

The Series 2 notes which are compliant with Basel III would be offered to the public from July 22 to 28.

The debt notes will have a tenor of 11 years, with a buyback option in six years. The new series will also have a coupon rate of 5.25 percent per annum, with interest payments scheduled every quarter.

At the same time, the notes will have a loss-absorption feature which means they can be written off or converted to equity once the bank experiences trouble.

Metrobank has tapped ING Bank NV (Manila) and Standard Chartered Bank as joint lead arrangers and selling agents for the transaction, while the bank itself is a limited selling agent.

Multinational Investment Bancorporation, meanwhile will serve as market maker and selling agent.

In March, Metrobank cut short its public offering of its Series 1 notes after it was more than two times oversubscribed.

The debt notes qualify as capital under the stricter Basel III standards, which universal banks started complying with during the start of the year.