Metrobank card unit raises P3 billion from fixed rate note issue

MANILA, Philippines - Metrobank Card Corp. (MCC), the credit card unit of the Metrobank Group, has raised P3 billion through the issuance of a three-year fixed rate note facility.

 “The capital raised will be used in support of MCC’s programs and ongoing development initiatives,” MCC president Claire Ann Yap said.

She said the issue generated strong response from investors and was twice oversubscribed.

MCC is a joint venture formed in 2003 between the Metrobank Group and Australia and the New Zealand Banking Group Ltd. (ANZ).

Another Metrobank Group affiliate, the First Metro Investment Corp. (FMIC), was tapped as issue manager for the notes facility, and was able to assemble a group of nine local financial institutions as noteholders.

“Tapping the peso debt market as a funding source has allowed us to exceed our target issue size. The support of nine leading banks, participating as noteholders, also proves the strength and leadership associated with the Metrobank brand,” Yap added.

Last year, MCC also raised P2 billion through a similar fixed rate corporate notes facility.

The nine noteholders are China Banking Corp., Philippines 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 Banking Group.

Bankers said most of the corporates and other institutions are raising capital in the first semester of the year. “They want to make sure that they have available capital versus the uncertainties of the second semester.”