Metrobank set to redeem P16B in debt notes before maturity

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METROPOLITAN BANK & Trust Co.’s board of directors on Thursday approved the increase in its authorized capital stock to P140 billion.

METROPOLITAN BANK & Trust Co. (Metrobank) said it will redeem P16 billion worth of subordinated debt notes by June 27, ahead of its 2024 maturity.

In a regulatory filing Thursday, the Ty-led bank said its board of directors approved to conduct the call option on the subordinated instruments worth P16 billion.

“This is in accordance with the terms and conditions of the note,” Metrobank said.

Metrobank issued the Basel III compliant Tier 2 notes in March 2014. The notes were priced at a 5.375% coupon rate and supposed to mature by 2024.

“The call option is subject to the approval of the Bangko Sentral ng Pilipinas (BSP). This disclosure will be updated/amended as soon as BSP approval is received,” the disclosure read.

Sought for further comments, Metrobank said that the redemption “should not have no impact” on their common equity Tier 1.

During the first nine months of 2018, the lender’s income rose 27% year-on-year to P16.8 billion. Total capital adequacy ratio was at 17.8%, while its common equity Tier 1 ratio at 15.2%.

Meanwhile, Metrobank’s board of directors approved the increase in its authorized capital stock to P140 billion from P100 billion to help expand its business.

The increase in authorized capital stock still requires the approval of its stockholders during the annual stockholders’ meeting in April, the BSP, the Securities and Exchange Commission, and the Philippine Stock Exchange.

“This will give Metrobank the flexibility to take advantage of future opportunities to further business expansion, and with sufficient authorized and unissued shares that it can issue in an expeditious and efficient manner,” the bank said in a separate disclosure.

Metrobank shares stood at P82.40 apiece, up P1.40 or 1.73% from the previous close. — Karl Angelo N. Vidal