MANILA, Philippines — Ty-led Metropolitan Bank & Trust Co. (Metrobank) is raising as much as P25 billion as it taps the onshore debt market anew via the issuance of long term negotiable certificates of deposits (LTNCDs).
In a disclosure to the Philippine Stock Exchange (PSE), Metrobank said its board of directors approved the fund raising activity during their meeting last Wednesday.
The bank will issue the debt papers with tenors of 5.5 to 10 years in one of more tranches of at least P2 billion per tranche.
Metrobank said the planned fund raising activity is subject to regulatory approval and market conditions.
The bank has so far raised P35.33 billion from previous issuances of LTNCDs, including P8 billion in October 2014, P6.25 billion in November 2014, P8.65 billion in September 2016, P3.75 billion in July 2017, P8.68 billion in October last year.
The bank has also launched the fourth tranche of its P100 billion bond and commercial paper program where it hopes to raise at least P5 billion with an upsize option.
So far, Metrobank has raised more than half of the programmed borrowing or P56.75 billion of the total amount. It raised P10 billion in November, followed by P18 billion last December, and another P17.5 billion last April.
The listed bank has been undertaking a series of fund raising activities in the domestic market to finance its aggressive expansion program as well as to beef up its lending portfolio.
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.
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.