Metropolitan Bank & Trust Co. (Metrobank) is raising least P10 billion in fresh funds from its fixed-rate bond offering, with an option to upsize.
On Thursday, the bank disclosed its bond offer with a tenor of 5.25 years and an interest rate of 3.60 percent per annum, payable quarterly, with the minimum investment amount at P500,000 and in additional increments of P100,000.
“Proceeds will be used for general working capital needs and diversification of the bank’s funding sources,” it said.
Started on Thursday, the offer will last until May 24, and subject to appropriate adjustments under market conditions. The bonds are intended to be issued and listed on the Philippine Dealing Exchange (PDEx) on June 4.
The joint lead managers and joint bookrunners of the offer are First Metro Investment Corp. and The Hongkong and Shanghai Banking Corp. Ltd.. Metrobank, together with joint lead managers and joint bookrunners, are the selling agents of the issuance.
Metrobank said it has generated an aggregate of P81.0 billion from bond offerings since November 2018.
The banks’ asset base hit P2.4 trillion a of the first quarter of the year, while total equity reached P306.6 billion during the same period. Its capital ratios are above regulatory requirements, with total capital adequacy ratio at 19.9 percent and common equity tier 1 ratio at 19 percent.
Metrobank’s first quarter 2021 net earnings expanded by 27 percent year-on-year to P7.8 billion “due to stable asset quality, strong non-interest income performance, and marginal rise in operating expenses.”