METROPOLITAN Bank & Trust Co. (Metrobank) raised P18 billion from the reissuance of its peso-denominated bond program.
In a disclosure to the local bourse Monday, the Ty-led Metrobank said it successfully completed the P18-billion reissuance of its two-year fixed-rate bonds yesterday.
The issuance is part of its P100-billion bond program approved by its board of directors last Sept. 19. The papers issued will mature in two years and carry an interest rate of 7% per annum to be paid quarterly until December 2020.
Due to “overwhelming investor demand” for the instrument, the lender upsized the offer size by more than thrice from the P5 billion it initially intended to offer.
The bonds issued on Monday, along with the P10-billion fixed rate bonds raised last month, brings Metrobank’s total issue to P28 billion, which it said is the largest peso-denominated bond issuance to date.
The bank said robust investor demand and strong credit led to a decline in the overall cost of the bond and credit spread.
“This serves as a significant milestone for Metrobank who has consecutively proven its ability to always be the first to market, and pioneer a reopening following its successful maiden issuance last November,” Metrobank President Fabian S. Dee was quoted as saying in the statement.
Standard Chartered Bank (SCB) acted as the transaction’s sole arranger and bookrunner. It also acted as a selling agent alongside Metrobank and First Metro Investment Corp.
Lynette V. Ortiz, SCB Philippines chief executive officer, said the reissuance proves Ty-led bank’s flexibility and swiftness to tap the local capital markets when the opportunity arises and when market conditions are constructive.
In October, Metrobank also raised some P8.68 billion from the first tranche of its P25-billion long-term negotiable certificates of deposit program. The notes will mature in 5.5 years to be paid quarterly and carry a 5.375% rate.
Metrobank posted a P5.7-billion income in the second quarter, up 55% from the P3.7 billion tallied the previous year on the back of its robust core business.
Shares in Metrobank went down P1.20 or 1.48% to close at P79.80 each on Monday. — Karl Angelo N. Vidal