Metrobank sets $2B debt offering program

Ty family-led Metropolitan Bank & Trust Co. has set up a medium-term debt market issuance program worth up to $2 billion, seeking leeway to fund its expansion program.

In a disclosure to the Philippine Stock Exchange on Thursday, Metrobank said its board had approved the establishment of a medium-term note (MTN) program worth up to $2 billion or its equivalent in other currencies, including without limitation US dollars, Philippine peso, Australian dollar, European euro, Japanese yen, British pound or Chinese yuan.

Metrobank said this program would be established to afford the bank “maximum flexibility in accessing markets and maximizing opportunities to raise funding expediently.”

The issuance of the notes would be subject to favorable market conditions, any applicable regulatory requirement, and certain closing conditions and deliverables that are usual and customary for transactions of such nature, the bank said.

Pursuant to the MTN program, Metrobank said from time to time, it may issue, offer and sell notes in such form, amount, currency, tenor, number of tranches at such interest rate and under such other terms and conditions as the management of the bank may subsequently determine, approve or ratify.

Notes under the MTN program usually mature in five to 10 years. A corporate MTN can be continuously offered by a company to investors through a dealer with investors being able to choose from differing maturities, ranging from nine months to 30 years.