Metrobank unit issues P2-B notes for capex

Metrobank Card Corp. (MetroCard) has issued P2 billion worth of fixed-rate corporate notes facility, its fifth capital market issuance and the second with a two-year issuance component.

MetroCard is the credit card subsidiary of the Metrobank Group.

Since 2005, MetroCard has raised a total of P9.1 billion in additional capital to make it one of the fastest growing and heavily-capitalized card business.

The additional capital will be used to fund its growing working capital requirements and to refinance existing obligations.

First Metro Investment executive vice president Jose Pacifico Marcelo said that the P2-billion notes facility represents a reaffirmation of confidence in MetroCard’s financial strength, professional management team and competitive position in the local card industry despite the current changing market conditions.  “In fact, the issue was 1.6 times oversubscribed,” Marcelo said, adding that they received offers totaling P3.2 billion.

First Metro Investment Corp. (FMIC), another subsidiary of the Metrobank Group, is the issuer manager of the facility.

Participating noteholders are China Banking Corp., Philippine National Bank, Allied Banking Corp., Development Bank of the Philippines, Robinsons Savings Bank, Rizal Commercial Banking Corp., East West Banking Corp., United Coconut Planters Bank and the Metrobank Trust and Banking Corp.-Trust Banking group.

MetroCard is a joint venture between Metrobank, the country’s largest bank, and the Australia and New Zealand Banking Corp. (ANZ Bank). With Metrobank’s local franchise and ANZ’s specialist credit card expertise, the partnership created one of the Philippines’ best credit card businesses with significant growth potential.