Metrobank shortens offering period for P10-billion bonds on strong demand from investors

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said Friday it shortened the offering period for its peso-denominated SEC-registration exempt fixed-rate bonds on strong demand.

Metrobank said in a disclosure to the stock exchange the bond offer would end on Oct. 17, instead of the initial Oct. 19.

The bonds have a tenor of one and a half years and an interest rate of 5.0 percent per annum in an aggregate principal of P10 billion, with an option to upsize.

“Proceeds will be used for general working capital needs,” the bank said.

The bonds are intended to be issued and listed on the Philippine Dealing Exchange on Oct. 28.

The issuance is part of Metrobank’s increased P200-billion bond and commercial paper program, as approved by its board of directors on Dec. 15, 2021.

First Metro Investment Corp., ING Bank N.V., Manila Branch, and Standard Chartered Bank are the joint lead managers and joint bookrunners of the offering. Metrobank, together with FMIC, ING, and SCB are the selling agents.

Metrobank is one of the strongest banks. The bank recorded a 33-percent year-on-year increase in net profit to P15.6 billion in the first half, as earnings surged 95 percent to P7.6 billion in the second quarter.

Performance was better across the board, with faster loan expansion, improving interest margin, robust fee income growth, stable operating costs, and lower provisions amid healthier asset quality.

Gross loans rose 9 percent year-on-year to P1.3 trillion, led by a 12-percent growth in corporate and commercial lending and 16-percent increase in gross credit card receivables.

Total deposits grew 13 percent to P2.1 trillion as CASA (current and savings account) deposits climbed by 10 percent to P1.5 trillion from a year ago, which resulted in lower funding costs.