Metrobank to raise at least $500M via debt note offer

MANILA, Philippines  —The Ty family-led banking giant Metropolitan Bank & Trust is returning to the debt market with plans to raise at least $500 million from the sale of notes.

The fundraising plan, which the bank can upsize, will be issued through Metrobank’s $2-billion medium-term note program that was approved almost seven years ago.

“Proceeds will be used to diversify the bank’s funding sources while supporting its operations,” Metrobank said in a stock exchange filing on Monday.

Metrobank’s last foray into the bond market was in late 2022, when it raised P23.7 billion after offering notes paying 5 percent per annum.

READ: Metrobank raises P23.7B from bond sale

For the present offer, the lender hired Bank of America Securities and UBS as joint global coordinators and bookrunners while Japan’s MUFG and Ty-led First Metro Investment Corp. was hired as joint bookrunners.

Last week, Metrobank announced its highest ever earnings in 2023 as net income jumped nearly 29 percent to P42.2 billion.

This translated to a return on equity of 12.5 percent, higher than the 10.3 percent recorded in the previous year.

In 2023, Metrobank said total assets grew by 9.2 percent to P3.1 trillion as gross loans increased by 7.6 percent. Within its loan portfolio, consumer loans jumped 15.9 percent while commercial loans grew 5.5 percent, signaling a robust consumer market.