Ty family-led Metropolitan Bank & Trust Co. (Metrobank) ventured into the local bond market on Thursday with the goal of raising at least P10 billion for fresh working capital.
The bonds will have a tenor of 5.25 years and an interest rate of 3.6 percent a year, payable quarterly, the bank said in a disclosure to the Philippine Stock Exchange.
The offering will run until May 24, subject to appropriate adjustments under market conditions.
Minimum investment amount is P500,000 with additional increments of P100,000.
The bonds are intended to be issued and listed on the Philippine Dealing Exchange (PDEx) on June 4, 2021.
First Metro Investment Corp. and The Hongkong and Shanghai Banking Corp. Ltd. are joint lead managers and joint bookrunners for the offer.
Above requirements
Metrobank and the joint lead managers and bookrunners are also the selling agents.
Metrobank has so far raised a total of P81 billion from offerings of peso bonds since November 2018 when the Bangko Sentral ng Pilipinas relaxed regulations on bond issuances by banks.
The second largest bank in the Philippines, Metrobank had P2.4 trillion in resources and total equity of P306.6 billion as of March 2021.
The bank’s capital ratios are comfortably above regulatory requirements, with total capital adequacy ratio at 19.9 percent and common equity tier 1 ratio at 19 percent.