METROPOLITAN BANK & Trust Co. (Metrobank) has set the final terms for its stock rights offering (SRO), through which it looks to raise P60 billion to fund its business operations and expansion.
In a disclosure to the local bourse on Wednesday, the Ty-led Metrobank said it will offer 799.8 million common shares priced at P75 apiece.
Eligible shareholders are entitled to subscribe to a share for every 3.976 common shares held as of March 21.
The offering will be conducted from March 22 to April 4.
“The capital raising exercise is expected to enable the bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the bank’s sales and distribution network that has rapidly expanded in the preceding years,” Metrobank said in a previous disclosure.
Aside from this, Metrobank said the fresh capital will also be used to fund the acquisition of the remaining 20% stake of ANZ Funds Pty. Ltd. (ANZ) in credit card provider Metrobank Card Corp. (MCC), thereby fully owning the credit card issuer.
MCC is a joint venture between Metrobank and ANZ formed in 2003, with the local lender holding the majority 60% stake.
Late last year, the lender bought a 20% stake in MCC from ANZ worth P7.4 billion, according to receipt of central bank approval obtained Dec. 29.
In January, GT Capital Holdings, Inc., Metrobank’s majority stakeholder, said it intends to subscribe to at least its full rights entitlement in Metrobank’s stock rights offer.
UBS AG, Hong Kong Branch is acting as joint global coordinator, joint bookrunner and international underwriter of the offer, while Metrobank’s First Metro Investment Corp. will serve as joint global coordinator, joint bookrunner, issue manager and domestic lead underwriter. DBS Bank Ltd. will also act as co-manager and co-underwriter.
Aside from Metrobank, other banks have also announced plans to conduct SROs.
Bank of the Philippine Islands said it will hold a rights offering expected to raise up to P50 billion. The capital will be used “to support the growth and strategic initiatives of the bank.”
Meanwhile, Rizal Commercial Banking Corp. plans to raise P15 billion from an SRO. Proceeds will be used to expand its loan business as well as strengthen their capital ratio under the Basel 3 standards.
Last year, Metrobank posted a P18.2-billion core net income in 2017, up by 10% from the same period in 2016, on the back of robust growth in its loans and deposits.
Metrobank shares closed at P96.50 apiece on Wednesday, gaining 50 centavos or 0.52% from the previous day’s finish. — Karl Angelo N. Vidal