Home Banking & Finance Metrobank eyes P10B from 5.25-year bonds

Metrobank eyes P10B from 5.25-year bonds

METROPOLITAN Bank & Trust Co. is looking to raise at least P10 billion from its offer of 5.25-year bonds which started on Thursday. — BW FILE PHOTO

METROPOLITAN BANK & Trust. Co. (Metrobank) wants to raise P10 billion via a bond offering to boost its capital and funding sources.

The peso-denominated papers will have a tenor of 5.25 years, the Ty-led lender said in a disclosure on Thursday. These bonds will have a fixed rate of 3.6% per annum that will be payable quarterly.

“Proceeds will be used for general working capital needs and diversification of the bank’s funding sources,” Metrobank said.

The lender began the offering yesterday, with the period set to run until May 24. The minimum investment for the bonds is at P500,000 and in additional increments of P100,000 thereafter.

Metrobank said they have the option to upsize the offer beyond the P10-billion plan.

First Metro Investment Corp. (FMIC) and The Hongkong and Shanghai Banking Corp. (HSBC) are the joint lead managers and joint bookrunners for the transaction, while FMIC, HSBC, and Metrobank will be selling agents for the bonds.

The bank targets to issue and list the bonds on the Philippine Dealing Exchange on June 4.

The bank said it has raised P81 billion from peso bonds since November 2018.

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

Metrobank’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.

Its shares ended trading at P44.50 apiece on Thursday, down by 25 centavos or by 0.56%. — L.W.T. Noble