Metropolitan Bank & Trust Co., the country’s second largest lender in terms of assets, said Tuesday it will issue P5 billion worth of long-term negotiable certificates of time deposits to fund business expansion.
Metrobank said in a disclosure to the stock exchange the notes would mature in seven years with an interest rate of 3.87 percent per annum, payable quarterly.
“The offer period for the LTNCDs will be from July 3 to July 14, 2017. Issue date is on July 20, 2017,” the bank said. “Note that Metrobank and its arranger reserve the right to adjust the offer period as necessary,” it said.
Metrobank tapped ING Bank as the sole arranger, bookrunner and selling agent. Other selling agents are Metrobank and First Metro Investment Corp., the investment arm of the Metrobank Group.
Other features of the LTNCD are tax exemption on interest income for individual investors if held for at least five years; quarterly interest payments; deposit insurance coverage with the Philippine Deposit Insurance Corp. up to a maximum of P500,000 per depositor; and negotiability subject to market conditions.
Metrobank posted a consolidated net income of P5.6 billion in the first quarter, up from P5.25 billion recorded in the same period in 2016, mainly on the strength of its core businesses.
Metrobank’s total deposits grew 16 percent to P1.4 trillion in January to March, while its current account, savings account deposits surged 19 percent.
Total loan portfolio grew 26 percent to P1.1 trillion year-on-year. Metrobank’s commercial segment went up 30 percent year-on-year while consumer business saw a 17-percent volume growth, led by auto loans.
Non-interest income increased to P5.4 billion by end-March, on the back of an 18-percent rise in service fees and commissions and income from trust operations that amounted to P3 billion.
It reported P1.1 billion in net trading and foreign currency gains, as well as P1.3 billion in miscellaneous income.