Metrobank plans stock rights offering

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Ty family-led Metropolitan Bank & Trust Co. plans to raise fresh capital to expand its fast-growing loan book, riding on the country’s strong macroeconomic prospects.

In a disclosure to the Philippine Stock Exchange on Wednesday, the country’s second biggest lender said its board had approved a stock rights offering of up to a maximum of 819.83 million common shares equivalent to the remaining unissued shares from it authorized capital stock.

“Timing and size of the transaction are subject to other details such as the offer price and are subject to receipt of regulatory approvals as well as market and other conditions,” the disclosure said.

Metrobank, which has grown its loan book by over 20 percent in the last six quarters, believes that the robust growth of the Philippines will continue to loan expansion across the various segments of the economy.

“The capital raising exercise is expected to enable the bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the bank’s sales and distribution network that has rapidly expanded in the preceding years. To that end, the bank intends to focus on enhancing customer experience through digitization initiatives and branch efficiencies,” Metrobank said.

Metrobank said it sought 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.”

“Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage,” the bank said.

Metrobank has mandated UBS as joint global coordinator and joint bookrunner and First Metro Investment Corp. as joint global coordinator, joint bookrunner and issue manager.