Metrobank raises P23.7B from bond sale

MANILA  -Ty-led banking giant Metropolitan Bank & Trust Co. (Metrobank) raised P23.7 billion from a bond offer that was upsized more than two times the size earlier announced due to strong demand.

In a statement on Friday, Metrobank said the fixed-rate bonds were listed on the Philippine Dealings and Exchange Corp. (PDEx).

“The overwhelming response to our bond offering affirms that despite the uncertainties, there is still strong demand for high quality issuers like Metrobank. Thank you to our loyal customers for sixty years of trust,” Fernand Antonio Tansingco, Metrobank senior executive vice president and head of financial markets sector, said in the statement.

The debt notes will mature in 2024 and carry a coupon rate of 5 percent gross per annum, payable quarterly, the lender said.

The warm market reception prompted the bank to increase the issue size from the original P10 billion. The offer period was also shortened amid the strong takeup from investors.

“The demand from both retail and corporate clients prompted us to increase our initial bond offering by more than two times beyond the P10 billion we announced to meet the very strong interest. The funds raised will mainly be used for the bank’s general capital requirements, including refinancing of some maturing issuances,” Tansingco said.

Metrobank’s offer is part of its its P200 billion bond and commercial paper program.

First Metro Investment Corp., ING Bank N.V. Manila Branch, and Standard Chartered Bank acted as joint lead managers and joint bookrunners of the offer. Metrobank, together with First Metro, ING, and Standard Chartered were also the selling agents of the issuance.

PDEx president and CEO Antonino Nakpil said bond offers for the year have now breached the P400 billion mark.

“It is fitting that Metrobank, the bank that pioneered bond issuance post the change in BSP regulations back in 2018, is the one that pushes the level of annual bond listings above the P400 billion milestone,” Nakpil said.

“The primary market is the bright spot for 2022 with the issuer community really showing that it is back with a vengeance after a lackluster 2021,” he added.

“Corporate and bank issuers have kept the wheels of public financing rolling and domestic investors have reciprocated with more than ample funds. Today’s issue was 2.37 times larger than the original P10 billion planned, again reflecting the continuous confidence of Metrobank’s bondholders,” Nakpil said.