Metrobank floats P5 B bonds under P100-B capital-raising program

MANILA, Philippines — Ty family-led Metropolitan Bank & Trust Co. (Metrobank) is raising at least P5 billion under the fourth tranche of its P100 billion bond and commercial paper program.

In a notice to clients, Metrobank said the fourth tranche would have a minimum size of P5 billion with an upsize option.

The bank said it has appointed ING and Standard Chartered Bank as joint arrangers for an upcoming issuance of peso fixed rate bond with a tenor of three and a half years.

“The final issue size, terms, and timing of the issuance will be subject to market conditions,” Metrobank said in a separate disclosure to the Philippine Stock Exchange (PSE).

The bank owned by the family of the late taipan George SK Ty has launched a P100-billion bond and commercial paper program last year.

So far, Metrobank has raised more than half or P56.75 billion of the total amount. It raised P10 billion in November, followed by P18 billion in December, and another P17.5 billion in April.

The bank has been undertaking a series of fund raising activities in the domestic market to financial its aggressive expansion program as well as to beef up its lending portfolio.

In April last year, Metrobank raised P60 billion from the sale of new shares to existing shareholders led by GT Capital Holdings through a stock rights offer last April to further enhance its capital ratios, keeping it well above the Basel III requirements.

The bank is also raising P25 billion from the issuance of long-term negotiable certificates of time deposits (LTNCDs).

The bank has so far raised P26.65 billion from previous issuances of LTNCDs including P8 billion in October 2014, P6.25 billion in November 2014, P8.65 billion in September 2016, and P3.75 billion in July last year.

Earnings of Metrobank grew by 18 percent to P13 billion in the first half from P11 billion in the same period last year.

“The solid performance for the semester was driven by its double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income, and improved operational efficiency,” Metrobank said

As of end-June, Metrobank’s consolidated assets reached P2.3 trillion and equity of P296.5 billion. Its capital ratios were comfortably above regulatory requirements, with total capital adequacy ratio at 17.1 percent and common equity tier 1 ratio at 15.7 percent.