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Metrobank to redeem P16-B IOUs

/ 05:22 AM February 15, 2019

Awash in cash from recent local bond offerings, Metropolitan Bank & Trust Co. plans to redeem ahead of maturity P16 billion worth of debt notes qualifying as tier 2 capital.

The bank’s board recently approved a plan to exercise the call option of the P16-billion subordinated debt on June 27, 2019, Metrobank said in a disclosure to the Philippine Stock Exchange.

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The call option is subject to the approval of the Bangko Sentral ng Pilipinas (BSP).

The P16-billion notes were issued in 2014 at a coupon rate of 5.375 percent a year. They were the second Basel 3-compliant instrument issued in the local market with a loss absorption feature. The feature allows the instrument to be recognized as bank capital in accordance with Basel 3 standards.

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The tier 2 notes will mature in June 2024 but Metrobank has the call option to redeem them early this June 2019.

Last year, Metrobank set up a P100-billion bond and commercial paper program to support lending activities and diversify funding sources.  About P28 billion had so far been raised from this new funding program.—DORIS DUMLAO-ABADILLA

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TAGS: debt notes, Metropolitan Bank & Trust Co.
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