Metrobank closes sustainability bond offer

MANILA, Philippines – Metropolitan Bank & Trust Co. (Metrobank) had closed the public offer for its Series F Asean Sustainability peso-denominated bonds ahead of schedule after drawing strong interest from both institutional and retail investors.

The Ty family-led bank disclosed on Tuesday that the offer ended on March 23. This was a week earlier than the original March 30 timetable, reflecting robust demand for the issuance.

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The bonds carry a tenor of one and a half years and offer a fixed interest rate of 5.4727 percent a year. They are set to be issued and listed on the Philippine Dealing & Exchange Corp. on April 14.

Metrobank said proceeds from the issuance will help diversify its funding sources while supporting its lending activities.

The bank intends to allocate the funds in line with its sustainable finance framework, particularly to finance or refinance eligible green and social assets. These projects are expected to deliver a positive environmental and social impact.

The issuance forms part of Metrobank’s P200-billion bond and commercial paper program. The bank’s board of directors approved this in December 2021.

First Metro Investment Corp., ING Bank N.V. Manila Branch and Standard Chartered Bank acted as joint lead managers and bookrunners for the transaction. They also served as selling agents alongside Metrobank, while ING took on the role of sustainability coordinator.

Metrobank noted that the bonds are exempt from registration under Section 9.1 (E) of the Securities Regulation Code and have not been registered with the Securities and Exchange Commission.

The early closure of the offer underscores continued investor appetite for short-term fixed-income instruments, particularly those aligned with sustainability-linked objectives. This happened amid a still uncertain interest rate environment.INQ