ORIX METRO Leasing and Finance Corp., a unit of Metropolitan Bank & Trust Co. (Metrobank), said its P2-billion maiden bond offering was oversubscribed 2.2 times when it was launched last week to raise more than double its initial offer size.
A statement by Metrobank’s First Metro Investment Corp. yesterday said Orix Metro was able to raise P4.16 billion from its offer of two-year fixed-rate peso bonds due to high market demand.
The offer period opened on Oct. 24 and was supposed to last until Nov. 6 but was cut short due to the oversubscription as early as day one.
“We are very happy with the overwhelming reception on this landmark transaction, Orix Metro’s debut in the public debt capital markets. This is a testament to the investing public’s trust and confidence in Orix Metro’s financial strength and ability to meet financial obligations,” First Metro Executive Vice-President Daniel D. Camacho was quoted as saying.
Metrobank said in a regulatory filing last week the bond offering of Orix Metro initially had an offer size of P2 billion with an interest rate of 4.55% per annum. It is scheduled to be listed at the Philippine Dealing and Exchange on Nov. 15.
The offer is the first tranche of the company’s P10-billion peso-denominated debt securities program, which its board of directors approved on Sept. 6. It will have one or more tranches with a tenor of two years.
First Metro was the financial adviser of the company for the offering. It was joined by Metrobank in acting as selling agents for the bond issuance.
The company attributed the success of Orix Metro’s bond market debut to Metrobank’s wide network, saying in the statement: “Metrobank and First Metro worked hand-in-hand in identifying the right market/investors-a key component in a maiden public offering such as this.”
Local debt watcher Philippine Rating Services Corp. (PhilRatings) gave Orix Metro a “PRS Aa plus (corp.)” credit rating for the bond offer, which means it has a strong capacity to meet its financial obligations.
“We at First Metro have always been an advocate of capital markets development and having introduced a new name like Orix Metro in the capital markets is another reason we are very proud of this deal,” Mr. Camacho said.
Orix Metro is the joint venture of Metrobank, First Metro and Japan’s Orix Corp., which is primarily engaged in providing leasing and financing services across different sectors. It has more than 100 branches nationwide. — Denise A. Valdez