Metrobank leasing arm raises P4.2 billion from bond issuance

MANILA, Philippines — The leasing and finance arm of the Metrobank Group has raised P4.16 billion from its maiden bond issuance to finance its aggressive expansion plans.

Constancio Tan, president of Orix Metro Leasing and Finance Corp., said the fund raising activity was more than two times oversubscribed from an initial volume of P2 billion.

“The issuance is a milestone in our 42-year track record in the leasing and finance industry — a testament to our company’s strength and innovation that contributed to our sustained growth and profitability over the years,” Tan said.  

The fund raising activity is part of the company’s P10 billion peso denominated debt securities program. The two-year bonds fetched an interest of 4.55 percent per annum to be paid quarterly.

ING Bank NV Manila branch acted as sole arranger to the issuance, while First Metro Investments Crop. was the company’s financial adviser and acted as selling agent together with Metrobank.

The bonds were listed on the Philippine Dealing and Exchange Corp. platform.

Tan said the proceeds of the bond program would support the company’s expansion plans as it continues to strengthen the coverage of the small and medium-sized enterprises (SMEs) in the rural areas.

“Most of our clients have been with us for so many years and we have become their most trusted partner in building their businesses,” Tan said.

The company is a joint venture between Ty-led Metrobank and FMIC as well as Japan’s Orix Corp. It is one of the country’s leading leasing and financing companies with services that include operating lease, financial lease, mortgage loan, receivables discounting and warehouse leasing.

 It has the widest market reach with 112 branches nationwide. It has 8,046 cars, pick-ups, vans and light trucks under its full service operating lease and fleet management.