By Karl Angelo N. Vidal, Reporter
METROPOLITAN BANK & Trust Co. (Metrobank) raised P11.25 billion in fresh funds via fixed-rate bonds, marking the fourth tranche of its P100-billion bond program.
In a regulatory filing Wednesday, the Ty-led lender said it successfully raised P11.25 billion via the two-year bonds after completing its public offer last June 21.
The two-year debt papers carry a coupon rate of 5.5% to be paid quarterly until July 2021.
The bonds were issued and listed on the Philippine Dealing and Exchange Corp. yesterday.
The total amount raised was higher than the bank’s initial target of P5 billion as it accommodated strong demand from institutional, high net worth and retail clients.
Jette C. Gamboa, Metrobank senior vice president and head of strategic planning and investor relations, said proceeds of the fund-raising activity will be used to support its lending activities and to diversify funding sources.
“Metrobank remains optimistic about the prospects of the Philippine economy, and we will continue to participate in the development of the capital markets,” Ms. Gamboa told BusinessWorld in a text message.
HSBC served as the sole arranger and bookrunner of the transaction. It also acted as a selling agent alongside Metrobank and First Metro Investment Corp.
The fund-raising activity marks the fourth tranche of Metrobank’s P100-billion bond program, bringing the issue size so far to P56.75 billion.
In November, the bank raised P10 billion from the issuance of two-year fixed-rate bonds, carrying an interest rate of 7.15%. This offer was reopened in December to raise an additional P18 billion.
Metrobank also raised P17.5 billion in April via three-year bonds.
Philippine Savings Bank, the thrift banking arm of Metrobank Group, announced on Tuesday its maiden peso bond offering where it wants to raise P3 billion via two-year debt papers from July 1-17 to diversify its funding sources and expand its consumer business.
Metrobank posted a P6.8-billion net income in the first quarter, up 15% from P5.9 billion in the same period last year, driven by consistent lending and margin expansion as well as higher fee-based income.
The bank’s shares stood at P71.50 apiece on Wednesday, down 90 centavos or 1.24% from the previous close.