BSP approves Metrobank notes issue

MANILA, Philippines - Metropolitan Bank & Trust Co., has received Bangko Sentral ng Pilipinas (BSP) approval to proceed with the issuance of peso-denominated Basel III-compliant Tier 2 notes.

In a statement, Metrobank said the BSP resolution effectively amended the terms and conditions of the bank’s previous approval and provides Metrobank the flexibility to issue the notes in either dollars or pesos, or a combination of both.

A peso Tier 2 note issuance, it said, would allow the bank to proactively manage its capital base to support its continued growth.

The notes issuance would also help Metrobank refinance its capital securities that have been de-recognized upon Basel III adoption this year.

Metrobank has mandated ING Bank N.V., Manila Branch (ING) and Standard Chartered Bank as joint lead arrangers for the peso transaction.

For the past years, the bank has been implementing strategic approaches to improve its capital and financial strength.

It has delivered a compounded annual growth rate in net income of 37 percent over the past five years, hitting a high of P18.1 billion in the first semester of 2013.

It said the steady increase in profitability did not come at the expense of asset quality. 

In the same period, the non-performing loan (NPL) ratio has consistently improved from 3.5 percent in 2009 to 1.8 percent as of June 2013, which puts it below the industry average of 2.7 percent.

While the bank has maintained majority of its loan book in corporate accounts, in recent quarters, its consumer segment has delivered above industry loan growth to help fuel the consumption demand in the Philippine economy.