Metrobank hikes Tier 2 notes issue
Metropolitan Bank and Trust Co. has increased the size of its lower Tier 2 subordinated notes to P8.5 billion from P5 billion due to heavy demand from investors.
In a report, Metrobank vice president Fernand Antonio Tansingco said total orders for the P5-billion notes offer reached P11 billion. “The issue was 2.2 times oversubscribed.”
The Bangko Sentral ng Pilipinas (BSP) has allowed Metrobank, the country’s largest lender, to increase the issue size to P10 billion should market response proves favorable.
The notes, priced at seven- percent coupon, has a 10-year maturity and a call option after five years.
The offer was launched to replace the $125-million subordinated notes due 2012 which Metrobank is redeeming. The issue will also strengthen the bank’s capital base, especially under new Basel 2 capital adequacy regulations.
Metrobank said the issue was a landmark transaction as it has the distinction of being “the largest local currency issue, the tightest-priced peso bank issue of its kind, and the highest credit rating for a Philippine peso subordinated notes given by Moody’s Investors Service.”
Last year, Metrobank engaged in a series of Tier 1 and primary shares issuances amounting to over P12 billion to boost its capital in anticipation of Basel 2 regulations.
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