Metrobank eyes at least P10 billion from bond issuance

MANILA, Philippines — Ty-led Metropolitan Bank & Trust Co. (Metrobank) is raising at least P10 billion as it returns to the domestic debt market via the issuance of 1.5-year peso-denominated bonds.

In a disclosure to the Philippine Stock Exchange (PSE), the country’s second largest private bank said the planned fund raising activity is subject to market conditions.

The offer size of P10 billion, Metrobank said, has an option to upsize.

Metrobank said proceeds would be used to refinance maturing issuances and diversify the bank’s peso funding sources while supporting its operations.

Last December, the bank doubled its bond and commercial paper program to P200 billion to diversify funding sources and bankroll the refinancing of maturing obligations.

“The objective of the program is to refinance maturing issuances and diversify the bank’s PHP funding sources over the next three years while supporting the bank’s lending activities,” it said.

Metrobank has been tapping both the onshore and offshore debt market to finance its aggressive expansion program and to beef up its lending portfolio.

The bank’s P100-billion bond and commercial paper program launched in November 2018 was fully utilized when it last tapped the domestic debt market where it raised P19 billion via the issuance of peso-denominated bonds last May.

Prior to the seventh and last tranche, the bank has raised P81 billion since November 2018.

The earnings of Metrobank jumped by 33 percent to P15.59 billion in the first half from P11.69 billion in the same period last year after it almost doubled in the second quarter.

The country’s second largest private lender in terms of assets attributed the better across the board performance to faster loan expansion, improving interest margin, robust fee income growth, stable operating costs, and lower provisions amid healthier asset quality.

Metrobank president Fabian Dee earlier said the continued improvement in the bank’s performance cements its strategy to enable various customers and businesses as economic activities accelerate.

“Our focus on serving our client needs while actively managing risks and promoting efficiencies has driven our solid operating results, and will continue to do so in the medium term as the economy expands,” Dee said.