Metrobank sells P11B in bonds

Metropolitan Bank & Trust Co. has raised P11.25 billion from a fresh offering of bonds to retail investors.

The two-year bonds carried a coupon of 5.5 percent a year and were listed on the Philippine Dealing & Exchange Corp. on Wednesday.

This is the fourth issue out of Metrobank’s P100-billion bond and commercial paper program as approved by its board last year. The bank has raised P56.75 billion from its peso-denominated bond offerings since November 2018.

“To accommodate robust demand from institutional, high net-worth and retail clients, Metrobank’s initial target of P5 billion was upsized to P11.25 billion,” Metrobank said in a disclosure to the Philippine Stock Exchange on Wednesday.

Metrobank posted P6.8 billion in net income for the first quarter of 2019, up 15 percent year-on-year. This was driven by a double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income and improvements in operational efficiencies.

As of end-March, Metrobank’s consolidated assets reached an all-time high of P2.3 trillion and had an equity of P289 billion.

Metrobank, the second largest in the country in terms of assets, is valued by the stock market at P288 billion.

Since last year, it has been easier for Philippine banks to issue bonds due to reforms in banking regulations. Bangko Sentral ng Pilipinas circular 1010 series of 2018 scrapped a stringent collateral requirement for as long as the bonds issued by a bank are enrolled or traded in a formal market.

By raising funds from the capital market, local banks are able to diversify their funding sources and reduce their reliance on deposits. —DORIS DUMLAO-ABADILLA