Metrobank plans P10-B bond sale

Ty-led banking giant Metropolitan Bank & Trust Co. (Metrobank) announced plans to raise at least P10 billion via sale of 1.5 year bonds.

The proposed offer would be used to refinance maturing debts, support operations and to diversify funding sources, a stock exchange filing on Tuesday showed.

Metrobank did not indicate details such as timing but said the transaction would be launched “subject to market conditions.”

The planned offer marks Metrobank’s return to the bond market after its P10-billion sale of 5.25-year notes in May 2021.

Last December, Metrobank’s board approved the doubling of its long-term bond program to P200 billion.

“The objective of the program is to refinance maturing issuances and diversify the bank’s [Philippine] funding sources over the next three years while supporting the bank’s lending activities,” Metrobank said in a previous filing.

Philippine companies were seen raising a record P400 billion in bonds for the year, to finance expansion plans during the postpandemic period, according to Reuters.

Last week, conglomerate San Miguel Corp. revealed plans to launch a mammoth P80-billion bond offer, which could be the county’s biggest-ever corporate debt issuance to date.

SMC’s proposed issuance would eclipse the previous P40-billion record achieved by its power subsidiary, SMC Global Power Holdings, last July.

On Tuesday, conglomerate Aboitiz Equity Ventures Inc. said it would sell P12 billion in bonds to partially finance the acquisition of the Mactan Cebu International Airport venture from Megawide Construction Corp. and GMR Infrastructure.

Property developer Cebu Landmasters Inc. also said on Tuesday it obtained a sell permit for its P5 billion in long-term bonds.

Read more...