Metrobank plans to raise at least Ps5bn from 3.5-year bonds

Metropolitan Bank & Trust is planning to raise at least Ps5bn (US$96m) from three and a half-year peso bonds, according to a filing on the Philippine Stock Exchange.

SINGAPORE, Sept 10 (IFR) - Metropolitan Bank & Trust is planning to raise at least Ps5bn (US$96m) from three and a half-year peso bonds, according to a filing on the Philippine Stock Exchange.

The final issue size, terms, and timing of the issuance will be subject to market conditions.

This will be the fourth tranche under Metrobank’s Ps100bn bond programme approved by the board of directors last year. Metrobank has raised an aggregate of Ps56.75bn from offerings of peso bonds since Bangko Sentral ng Pilipinas in August last year allowed banks to issue bonds without prior authorisation.

In July, Metrobank raised Ps11.25bn from two-year bonds at 5.5%, payable quarterly. In April, the bank printed Ps17.5bn three-year bonds at 6.3%. In January, the bank raised Ps18bn from a tap of November 2020 bonds at 7% and in October last year, it raised Ps10bn from two-year notes at 7.15%.

Metrobank has mandated ING Bank Manila branch and Standard Chartered Bank as joint lead arrangers for the planned issuance.

The bank reported 18% growth in net income to Ps13bn in the first half of 2019 driven by double-digit growth in operating income on the back of consistent loan growth, margin expansion, higher fee-based income and improved operational efficiency. Consolidated assets reached an all-time high of Ps2.3trn as of March 2019.

The bank’s capital ratio was above the regulatory requirements, with the common equity Tier 1 ratio at 15.7%.

(Reporting by Krishna Merchant; Editing by Vincent Baby)

((Krishna.Merchant@thomsonreuters.com; +65 64174544;))

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