Metrobank unit raises P4.16B from bond offer

The Metrobank group’s leasing and finance arm Orix Metro Leasing and Finance Corp. raised P4.16 billion from a maiden bond offering that was warmly received by the market.

The offer, the first tranche under its P10-billion bond program, has a tenor of two years and a coupon rate of 4.55 percent a year.

The inaugural offering was oversubscribed by 2.2 times the base offering size of P2 billion.

The offer period was set for Oct. 24 to Nov. 6 but was cut short as the order book was oversubscribed from day one.

The issuance of the bond and listing on fixed income platform Philippine Dealing and Exchange is on Nov. 15.

“We are very happy with the overwhelming reception on this landmark transaction, Orix Metro’s debut in the public debt capital markets. This is a testament to the investing public’s trust and confidence in Orix Metro’s financial strength and ability to meet financial obligations,” said Daniel Camacho, executive vice president and head of investment banking at First Metro Investment Corp. (FMIC).

FMIC, the investment banking arm of the Metrobank Group, acted as financial adviser to the issuer. FMIC and its parent firm, Metropolitan Bank & Trust Co., both acted as selling agents for the issuance.

“We at First Metro have always been an advocate of capital markets development and having introduced a new name like Orix Metro in the capital markets is another reason we are very proud of this deal. We are equally proud to support Orix Metro as they continue to expand their business to medium-sized enterprises, which is the backbone of our economy,” Camacho said.

In addition, Camacho noted that this public debt issuance was in line with the Bangko Sentral ng Pilipinas’ push for banks to make efficient use of their balance sheet, offering Orix Metro an alternative source of funding.

Orix Metro is one of the leading and most profitable leasing and finance companies in the Philippines. It has more than 100 branches in strategic locations around the country and has been in the industry for over 40 years.

The offering obtained an issuer rating of “PRS Aa plus” with a stable outlook from local credit watchdog Philippine Rating Services Corp. (PhilRatings). A company rated PRS Aa differs from the highest-rated issuances—or those rated PRS Aaa—only by a small degree. These are deemed to have a strong capacity to meet its financial commitments relative to that of other Philippine corporates. The “plus” further qualifies the assigned rating.