FMIC sees P3-B income this yr

MANILA, Philippines - First Metro Investment Corp. (FMIC), the investment house of the Metrobank group, is seen to post a P3-billion net income in 2013, about the same level as last year, a top company official said.

FMIC president Roberto Juanchito Dispo said their positive outlook for 2013 could be attributed to the number of deals they expect to close for the year.

“2012 is a banner year for the company. Including our subsidiaries, we will end close to P3 billion (in profit) considering what is in the pipeline and the trading environment,” he said.

“For 2013, we can replicate our income performance in 2012.”

At the same time, Dispo said they hope to participate in the planned $1 billion onshore bond issue of the National Government in the first quarter.

“Hopefully, we could have the same role (in the dollar bond issuance). We would be part of the issue coordinator,” he said.

The planned issue size, Dispo said, is double the maiden $500 million notes carried out in 2012.

Dispo said, the dollar bonds are likely to come with 10 to 15-year maturities.

He said they are also planning to issue up to P1 billion worth of exchange-traded funds (ETFs) within this month.

In the next two to five years, depending on the demand, they could probably raise some P5 billion to P10 billion worth of ETFs.

Dispo said the Philippine Stock Exchange (PSE) would be able to come up with its rules on ETFs by Jan. 9.

“After this date, we would probably be able to push through with our ETF issuance,” he said.

Aside from these, he said they are hoping to arrange some of the planned corporate bond issuances of several companies in the near term.

“There are also companies that are planning to issue dollar and peso funds,”he said.

For his part, FMIC senior vice president Justino Juan Ocampo said there are also a number of banks that may tap the equities market to comply with Basel III requirements effective 2014.

FMIC currently holds an aggregate 70 percent market share in peso-denominated corporate and government debt transactions.

It is now the country’s largest investment bank with assets of P79 billion and a market capitalization of P21.9 billion as of end-2011.