Home Banking & Finance Metrobank upsizes bond issuance to P19 billion on strong investor demand

Metrobank upsizes bond issuance to P19 billion on strong investor demand

METROPOLITAN BANK & Trust Co. raised P19 billion from its offer of 5.25-year peso-denominated bonds. — BW FILE PHOTO

METROPOLITAN Bank & Trust Co. (Metrobank) has raised P19 billion from its offering of peso-denominated bonds, with strong investor appetite causing it to upsize the issue and close the offer period early.

The Ty-led bank said in a disclosure to the stock exchange on Wednesday that the offering, which was originally scheduled to run from May 6 to May 24, was closed on May 18 “due to strong investor demand from both institutional and retail clients.”

“The strong demand prompted the bank to raise the initial offering from an aggregate principal of P10 billion to P19 billion, which also led to a 1.9 times oversubscription,” Metrobank Head of Investor Relations Minda Claver A. Olonan told reporters said via e-mail.

The lender earlier said the proceeds of the bond offer will be used for general working capital needs and diversification of its funding sources.

The bonds Metrobank offered have a tenor of 5.25 years and carry a coupon rate of 3.6% payable quarterly. The rate is 35 basis points higher than current benchmark rates, which reflects investor optimism.

The bonds will be listed on the Philippine Dealing and Exchange Corp. on June 4.

First Metro Investment Corp. and The Hongkong and Shanghai Banking Corp. Ltd. (HSBC) were the joint lead managers and joint bookrunners of the offering.

The issuance is the last tranche of the bank’s P100-billion bond and commercial paper program approved in 2018.

Meanwhile, in July 2020, Metrobank sold $500 million in 5.5-year dollar-denominated notes to finance its short-term borrowings.

The bank’s net income increased by 27.1% to P7.83 billion in the first quarter, backed by strong non-interest earnings and stable asset quality.

Metrobank’s shares ended trading at P45 apiece on Wednesday, down by 95 centavos or 2.07% from the previous day’s close. — IBC