With its P60-billion fresh capital buildup program and a fast-growing domestic economy, Ty family-led Metropolitan Bank & Trust Co. expects to sustain a medium to high-teen growth in its lending activities in the years ahead.
For the stock rights offering (SRO), eligible shareholders are entitled to subscribe to one share for every 3.976 Metrobank common shares held as of the record date March 21. The ex-date is set for March 16, which means new investors would have up to March 15 to buy Metrobank shares to be eligible for SRO entitlement.
The offer price of P75 per share was based on a 22-percent discount to the 10-day volume-weighted average price of Metrobank common shares listed on the Philippine Stock Exchange. The offer period starts on March 22 and ends on April 4.
“Metrobank will use the SRO proceeds for growth and ROE (return on equity) enhancement. The new capital will allow Metrobank to sustain its loan growth momentum across various segments —top corporations, midmarket and small-and-medium enterprises,” Metrobank head of investor relations Juan Placido Mapa III said in a text message.
A portion of the proceeds will be used to increase Metrobank’s ownership in Metrobank Card Corp.
Mapa said Metrobank would likely sustain a mid- to high-teen loan growth over the medium term assuming the domestic economy would grow by 6-7 percent a year.
Assuming a full subscription of its P60-billion stock rights offering, leading online stock brokerage COL Financial estimated that the bank’s core or tier 1 capital adequacy ratio would increase by 3 percentage points to 14 percent of risk assets, above the minimum of 11 percent 2019 CET1 (common equity tier 1) ratio required by the Bangko Sentral ng Pilipinas. —DORIS DUMLAO-ABADILLA