Metrobank raises P13.75 billion from onshore bond market

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) raised another P13.75 billion as it tapped the onshore bond market anew amid strong demand from retail investors, prompting the bank to upsize the fundraising activity.

The bonds with a tenor of 3.5 years and a coupon rate of 4.5 percent were listed on the platform of the Philippine Dealing & Exchange Corp. (PDEx) Thursday.

Given strong investor interest, Metrobank upsized the volume from the original size of P5 billion and shortened the offer period by one week.

 “Due to the robust demand from both institutional, high net worth and retail clients, Metrobank upsized the issue amount to P13.75 billion from the original target of P5 billion,” the bank said in a statement.

ING Bank NV, Manila branch and Standard Chartered Bank served as joint lead arrangers for the issuance.

So far, Metrobank has raised P70.5 billion out of its P100-billion bond and commercial paper program launched last year. It raised P10 billion in November, followed by P18 billion last December and another P17.5 billion last April.

The listed bank has been undertaking a series of fund raising activities in the domestic market to finance its aggressive expansion program, as well as to beef up its lending portfolio.

Metrobank is raising as much as P25 billion via the issuance of long term negotiable certificates of deposits (LTNCDs). It intends to offer the debt papers with tenors of 5.5 to 10 years in one or more tranches of at least P2 billion per tranche.

The bank has so far raised P35.33 billion from previous issuances of LTNCDs including P8 billion in October 2014, P6.25 billion in November 2014, P8.65 billion in September 2016, P3.75 billion in July 2017, and P8.68 billion in October last year.

It also raised P60 billion from the sale of new shares to existing shareholders led by GT Capital Holdings through a stock rights offer last April to further enhance its capital ratios, keeping it well above the Basel III requirements.

Earnings of Metrobank grew by 18 percent to P13 billion in the first half from P11 billion in the same period last year.

As of end-June, Metrobank’s consolidated assets reached P2.3 trillion and equity of P296.5 billion. Its capital ratios were comfortably above regulatory requirements, with total capital adequacy ratio at 17.1 percent and common equity Tier 1 ratio at 15.7 percent.