Metrobank eyes P81-B stock rights offer

MANILA, Philippines — The Metropolitan Bank and Trust Co. (Metrobank) plans to conduct a stock rights offer (SRO) with a maximum of 819.82 million common shares approved for issuance.

In a disclosure to the Philippine Stocks Exchange (PSE), Metrobank said it has received its board's approval to conduct a SRO by way of issuance of up to a maximum of 819.82 million common shares.

This is equivalent to the remaining unissued shares from the bank's authorized capital stock, and worth P80.92 billion based on yesterday’s closing price of P98.7 per share Metrobank said.

According to the company, the timing and size of the transaction are still subject to other considerations, such as the offer price, and are subject to receipt of regulatory approvals and market conditions.

Metrobank said the capital raising activity is expected to help the bank pursue its business prospects and sustain its loan growth momentum, leveraging on the bank's sales and distribution network.

The bank said the robust economic growth of the Philippines would also continue to support the prospects for accelerated loan expansion across various segments.

"Metrobank seeks to capitalize on the growth opportunities of large cap corporates and especially in its core franchise, the middle market and small to medium enterprises (SME) segments," the company said.

"Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage," it added.

Metrobank said a portion of the SRO proceeds would be used for the acquisition of the remaining 20 percent equity stake in Metrobank Card Corp. (MCC).

The acquisition was announced in October 2017 and will result in the bank's 100 percent equity ownership in MCC.

Metrobank has so far purchased a 20 percent stake from ANZ Funds Pty. Ltd. for a consideration of P7.4 billion following the approval of the BSP, which was obtained last December 29, 2017. The remaining 20 percent is set to be completed by the third quarter under the same terms.

Over the last six quarters, Metrobank said it has consistently delivered over 20 percent loan growth, which is faster than the industry average.

Its assets as of Sept. 30, 2017 expanded 16 percent to P2 trillion, the second largest among Philippine banks.

The bank also has a total capital adequacy ratio of 16 percent and common equity tier 1 of 13.3 percent.