Metrobank raises P10 billion in one day

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) raised P10.5 billion yesterday via the issuance of peso-denominated bonds just as the National Capital Region (NCR) shifted to a more relaxed general community quarantine.

The country’s second largest bank was forced to cut short its offer period to just one day instead of the earlier June 3 to 16 schedule on the back of strong investor demand from both institutional and retail clients.

Metrobank said the robust demand reflects the market’s continued confidence in the bank owned by the family of the late taipan George SK Ty amid the current health and economic situation.

The bank has raised P81 billion since it launched its P100-billion bond and commercial paper program in November 2018.

“This is the sixth issue out of Metrobank’s board-approved P100 billion bond and commercial paper program,” it added.

It has been tapping the onshore debt market to finance its aggressive expansion program and to beef up its lending portfolio. It raised P10 billion in November and P18 billion in December 2018, followed by P17.5 billion in April last year, P11.25 billion last July, and another P13.75 billion last October.

The latest bond offering, with a tenor of 1.25 years and a coupon of three percent, would be listed on the Philippine Dealing and Exchange Corp. (PDEx) on June 24.

First Metro Investment Corp., ING Bank Manila branch and Standard Chartered Bank served as joint lead arrangers for the fund-raising activity.

Metrobank is the second largest lender in the country in terms of assets with P2.4 trillion and capital with a total equity of P304.5 billion as of end-March. This translated to a capital adequacy ratio of 17.6 percent and Common Equity Tier 1 ratio of 16.3 percent, well above the requirements of the Bangko Sentral ng Pilipinas.

The bank more than doubled its provisions to P5 billion in the first quarter from P2.4 billion as it expects soured loans to rise amid the COVID-19 pandemic, dragging its net income down by 10.3 percent to P6.1 billion from P6.8 billion.

Metrobank has one of the largest domestic networks with 960 branches and over 2,300 ATMs nationwide, and over 30 foreign branches, subsidiaries and representative offices.