Domestic Bonds

Metrobank raises 23.7 billion pesos through oversubscribed bonds

Lawrence Agcaoili – The Filipino Star

October 29, 2022 | 00:00

MANILA, Philippines – Metropolitan Bank and Trust Co. (Metrobank) has successfully raised 23.7 billion pesos, more than double the size of the initial 10 billion peso issue, despite the end of the offering of its peso-denominated bond earlier than expected due to strong demand.

Despite the uncertainties, Metrobank senior executive vice president and head of the financial markets sector, Fernand Antonio Tansingco, said the overwhelming response to the bond issue says there is still strong demand for issuers of high quality like Metrobank.

“Demand from retail and corporate customers prompted us to increase our initial bond offering by more than two times beyond the 10 billion pesos we announced to respond to very strong interest,” Tansingco said.

According to the bank, the proceeds will be used to refinance maturing issues and diversify its sources of peso funding while supporting its operations.

“Funds raised will be used primarily for the Bank’s general capital needs, including the refinancing of certain maturing issues,” Tansingco said.

The 1.5-year bonds, with a fixed coupon of 5% per annum, listed yesterday on the Philippine Dealing and Exchange Corp. (PDEx).

PDEx Chairman and CEO Antonino Nakpil said Metrobank pioneered bond issuance after Bangko Sentral ng Pilipinas issued new regulations in 2018.

This pushed the level of annual bond listings above the 400 billion peso mark.

Nakpil said the issue was 2.37 times larger than the 10 billion pesos initially planned by Metrobank, reflecting the continued confidence of bondholders in the bank.

“The primary market is the bright spot for 2022, with the issuer community really showing that it is back in full force after a lackluster 2021. Corporate and bank issuers have kept the wheels of public funding going, and domestic investors have returned the favor with more than enough funds. ,” he said.

First Metro Investment Corp., ING Bank NV Manila Branch and Standard Chartered Bank acted as lead managers and joint bookrunners, while Metrobank, together with FMIC, ING and SCB, acted as managing agents. sale.

The listed bank tapped the onshore and offshore debt market to fund its aggressive expansion program and bolster its loan portfolio.