Metrobank to issue new LTNCDs

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) is issuing a new tranche of seven-year long-term negotiable certificates of deposits (LTNCDs), the bank said in a disclosure to the Philippine Stock Exchange.

The LTNCDs will be offered at a rate of 4.25 percent per annum, payable quarterly. The minimum investment size is P50,000, with increments of P50,000 thereafter.

The public offer period for the LTNCDs is from Nov. 4 to 14. The bank, however, reserves the right to adjust the timing of the offer period as necessary.

This is Metrobank’s second offering of LTNCDs after it successfully raised P8 billion of 5.5-year LTNCDs last month. The strong demand for the initial LTNCD tranche forced the bank to launch a follow-on offer to satisfy unmet client demand.

Metrobank earlier received Bangko Sentral ng Pilipinas (BSP) approval for an LTNCD program of up to P20 billion, to be issued in tranches with approved tenors ranging from 5.25 years up to 10 years.

The bank has up to the first quarter of 2015 to complete the program.

Hongkong and Shanghai Banking Corp. Ltd. (HSBC) and ING Bank N.V., Manila branch are the joint lead arrangers and selling agents for the transaction.

First Metro Investment Corp. (FMIC), Multinational Investment Bancorporation (MIB) and Metrobank will also serve as selling agents for the offer.

MIB will also act as market maker for secondary trading of the LTNCDs. It will surrender the market maker role when the instrument is listed on the Philippine Dealing and Exchange Corp. (PDEx) platform.