Metrobank sets up $2-B debt program

METROPOLITAN BANK & Trust Co. (Metrobank) is embarking on a medium-term debt program to raise funds for its operations and expansion plans.

Metrobank told the local bourse on Thursday that its board of directors approved yesterday the establishment of a mediumterm note program, under which it will issue worth up to $2 billion in debt.

“The program shall be established to afford the bank maximum flexibility in accessing markets and maximizing opportunities to raise funding expediently,” the listed lender said in a brief disclosure.

“The issuance of notes pursuant to the program shall be subject to favorable market conditions, any applicable regulatory requirement, and certain closing conditions and deliverables that are usual and customary for transactions of such nature,” it added.

A medium-term debt program serves as a flexible facility for corporates to issue foreign currency notes in the global capital markets, and are offered on a continuing basis.

Metrobank said the note program’s aggregate amount of $ 2 billion can be issued in different currencies including the US dollar, the Philippine peso, Australian dollar, euros, the Japanese yen, British pound, or Chinese yuan.

“[T]he bank may from time to time issue, offer and sell notes in such form, amount, currency, tenor, number of tranches, at such interest rate, and under such other terms and conditions as the management of the bank may subsequently determine, approve or ratify,” the listed lender added.

Metrobank recorded lower earnings in 2016 at P18.09 billion, down 3% year on year, due to higher operating expenses during the period.

Its operating income grew 16% last year to P78.17 billion, while total deposits reached P1.4 trillion in 2016.

At end-2016, it had a total of 959 branches and 2,305 automated teller machines situated across the country. More than half of its branches are located outside Metro Manila.

Metrobank saw its shares gain five centavos or 0.06% to end at P78.10 apiece on Thursday. —