Metrobank raises P32B from stock rights offer

TY-LED Metropolitan Bank and Trust Co. has completed a record round of fund raising to support its planned expansion in the coming years.

In a statement, Metrobank, the country’s second-largest bank, said it had raised P32 billion through a stock rights offer, in which existing shareholders were asked to fork out more money for the company.

With the conclusion of the transaction, Metrobank now has nearly twice the amount of capital it needs under existing regulations, allowing the company to expand its current business as it takes advantage of good economic conditions.

‘‘The continued strengthening of the Philippine economy, a growing middle class, and low credit penetration create sustainable attractive growth opportunities for the banking sector,’’ Metrobank said in a disclosure on Monday.

After the end of its offer period on March 27, the bank said it was able to sell 435.37 million new shares to investors at P73.50 each.

The new shares will be listed on the Philippine Stock Exchange on April 7.

UBS and JP Morgan were joint global coordinators for the transaction, while First Metro Investments Corp., a Metrobank affiliate, handled domestic sales.

HSBC acted as co-international manager.

Metrobank shares rose 0.81 percent to P99.80 on Monday, tracking the main indexÆs 0.76-percent gain.

In its statement, the bank said it would target small and large businesses, as well as the growing retail space in its expansion.

‘‘The bank likewise intends to use its expanded capital base for capacity building by increasing its sales coverage and distribution network,’’ the bank said.

At the end of December, the bank’s total asset base stood at P1.6 trillion, up 16 percent year-on-year.

Outstanding loans rose by a quarter to P759 billion, while deposits were up 17 percent to P1.2 trillion.

With the fresh infusion from investors, Metrobank’s capital relative to risk-weighted assets would increase to 19.4 percent, nearly double the required 10 percent for major banks.

Common equity tier-1 capital, which only counts common equity, would improve to 15.5 percent. Paolo G. Montecillo