Metrobank to issue P20-B long-term negotiable CDs

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) will issue P20 billion worth of long-term negotiable certificates of deposits (LTNCDs) following the successful sale of P6.5-billion Basel III-compliant Tier 2 notes.

In a report, Metrobank said the timing and launch date of the LTNCD issue will depend on the approval of the Bangko Sentral ng Pilipinas (BSP).

“It will also be subject to prevailing market conditions,” Metrobank’s investor relations head Juan Placido T. Mapa said.

He said the series of capital raising was undertaken not only to fulfill all Basel III capital requirements as mandated by the BSP but also to fuel further aggressive lending, especially to the consumer/retail market.”

On Wednesday, the bank closed early the sale of its P6.5-billion Basel III-compliant Tier 2 notes when strong demand almost doubled the orderbook. It was originally scheduled to close on July 28.

But on the first offer day yesterday, the orderbook was two times oversubscribed, forcing Metrobank to end it by the end of the trading day.

Mapa explained that the issue size of the notes merely completed its P22.5 billion ($500 million) Tier 2 note program. Last March, Metrobank successfully issued P16-billion Tier 2 notes.

ING Bank NV Manila Branch andStandard Chartered Bank were the joint lead arrangers and selling agents for both notes issuance. Likewise, Multinational Investment Bancorporation was the market maker and selling agent.

Majority of the country’s commercial banks are expected to complete their capital-raising activities within the year to comply with the BSP-mandated Basel 2.5 and Basel III capital frameworks, paving the way for the next wave of capital increases within the thrift and development bank sector.