Metropolitan Bank & Trust Co., the second-largest lender in the country, said Friday it listed on the Philippine Dealings and Exchange Corp. the P23.7 billion it raised from a fixed-rate bond offering.
The bank raised the bond offering by more than two times the intended issue size of P10 billion amid strong demand and shortened the offer period for the 1.5-year bonds.
“The overwhelming response to our bond offering affirms that despite the uncertainties, there is still strong demand for high-quality issuers like Metrobank. Thank you to our loyal customers for sixty years of trust,” Metrobank senior executive vice president and head of financial markets sector Fernand Antonio Tansingco said in a statement. Metrobank celebrated its 60th anniversary this year.
Tansingco said the funds raised would be used for general capital requirements, including refinancing of some maturing issuances.
PDEx president and chief executive Antonino Nakpil said Metrobank which pioneered bond issuance pushed the level of annual bond listings above the P400-billion milestone.
“The primary market is the bright spot for 2022 with the issuer community really showing that it is back with a vengeance after a lackluster 2021. Corporate and bank issuers have kept the wheels of public financing rolling and domestic investors have reciprocated with more than ample funds,” Nakpil said.
“Today’s issue was 2.37-times larger than the original P10 billion planned, again reflecting the continuous confidence of Metrobank’s bondholders,” Nakpil said.
The bonds will mature in 2024 and carry a coupon rate of 5 percent gross per annum, payable quarterly.
Metrobank’s bond sale is part of its increased P200-billion bond and commercial paper program, which was approved by its board of directors on Dec. 15, 2021.
First Metro Investment Corp., ING Bank N.V. Manila Branch and Standard Chartered Bank are the joint lead managers and joint bookrunners of the offering. Metrobank, together with First Metro, ING, and SCB are the selling agents of the issuance.
Metrobank’s capital ratios are among the highest in the industry, with total capital adequacy ratio of 17.6 percent and common equity tier 1 ratio of 16.8 percent.
Consolidated assets reached P2.7 trillion as of end-June 2022, making it one of the strongest and well-capitalized banks in the country.