Metrobank raising P10 billion via fixed-rate bond issue

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) is raising at least P10 billion through the issuance of fixed-rate bonds to finance its working capital needs, diversify funding sources and shore up the bank’s position in preparation for a rebound from the COVID-19 pandemic.

The peso-denominated bond offer with a tenor of 5.25 years and an interest rate of 3.6 percent per annum started Thursday and will last until May 24. It would be listed on the Philippine Dealing and Exchange Corp. (PDEx) on June 4.

The country’s second largest lender in terms of assets said the offer period for the Securities and Exchange Commission (SEC) registration-exempt bonds is subject to appropriate adjustments under market conditions.

Metrobank has been tapping the onshore and offshore debt markets to raise capital for its funding needs and to diversify funding sources over the past few years.

The bank owned by the family of the late taipan George SK Ty has raised a total of P81 billion in six tranches out of its P100-billion bond and commercial paper program launched in November 2018.

Last June, Metrobank was able to raise P10.5 billion in just one day after investors gobbled up its 1.25-year peso-denominated bonds.

In the overseas debt market, Metrobank raised $500 million through the issuance of dollar-denominated senior unsecured notes in July last year to optimize the bank’s capital structure amid the pandemic.

This is part of a medium term note program worth up to $2 billion or its equivalent in other currencies launched in March 2017 to fund its expansion program.

Metrobank’s net income jumped by 27.1 percent to P7.78 billion in the first quarter as trading gains more than doubled to P2.89 billion while provisioning for soured loans fell 50 percent to P2.5 billion.

Its asset base stood at P2.4 trillion and its total equity amounted to P306.6 billion as of end-March.

It has over 950 branches, over 2,300 ATMs nationwide as well as over 30 foreign branches, subsidiaries and representative offices.