Metropolitan Bank & Trust Co. (Metrobank) will redeem P6.5 billion in debt in August after securing approval from the central bank.

Metrobank told the local stock exchange on Tuesday that the Bangko Sentral ng Pilipinas (BSP) okayed its request to exercise the call option on P6.5-billion worth of subordinated debt issued in 2014.

The Ty-led lender said the call option will take effect on Aug. 8 and will be in accordance with terms and conditions of the issuance.

In a text message, Metrobank Senior Vice President and Head of Strategic Planning and Investor Relations Jette C. Gamboa said the debt notes were issued back in Aug. 8, 2014.

Ms. Gamboa said the notes carry an interest rate of 5.25% per annum and are already callable this coming August.

Moving forward, she said “any future bond issuance will be done to help manage or diversify our funding sources.”

Metrobank saw its net income decline 9.33% to P6.1 billion in the first quarter from the P6.75 billion posted in the same three-month period last year.

The bank’s shares ended at P36.45 apiece on Monday, down one percent or 35 centavos from Tuesday’s close. — B.M. Laforga