Metrobank set to issue P2b in CPs and bonds

METROPOLITAN Bank & Trust Co., the second-largest lender in terms of assets, plans to raise at least P2 billion through the issuance of the first tranche of a P100-billion bond and commercial paper program.

Metrobank said in a disclosure to the stock exchange Friday it appointed Standard Chartered Bank as sole arranger for the first tranche of the issuance.

“The first tranche will have a tenor of two to five years to be priced using the applicable Php benchmark. Issue size will be determined through a book-build process,” it said.

“The bank is looking to raise at least P2 billion, with the option to upsize. Timing of the issuance will be subject to market conditions,” Metrobank said.

The bank’s board on Sept. 19 approved the bond and commercial paper program of up to P100 billion in one or more tranches and tenors of at least three months.

The bank said the the program aimed to support lending activities and diversify funding sources.

Metrobank is one of the leading universal and commercial banks in the country in terms of assets, deposits and loans.

Net income in the first six months of 2017 climbed 16 percent to P11 billion from a year ago, buoyed by the sustained strength of core businesses. Net income in the second quarter jumped 31 percent to P5.2 billion from P3.9 billion a year ago.

Metrobank president Fabian Dee said the solid performance was driven by the core business, as the double-digit growth in loans and sustained Casa (current and savings account) ratio lifted margins, while recurring expense growth was kept at a manageable level.

The bank said the loan growth guidance of high-teens was met, as the total portfolio expanded 18 percent year-on-year to P1.3 trillion. The commercial segment led the growth at 21 percent, driven by the strong performance of top corporate accounts followed by middle market and SMEs.  

Total deposits increased to P1.6 trillion at the end of the first half, and the bank’s Casa ratio was maintained at 62 percent. 

Net interest margin for the period was 3.77 percent, or 5 basis points higher than the comparative figure last year.

Topics: Metropolitan Bank & Trust Co. , Metrobank , bond , commercial paper
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