Metrobank raises $1B from dollar bond offer

METROPOLITAN Bank and Trust Co. (Metrobank) has successfully raised $1.0 billion (about P56.2 billion) from the INTERNATIONAL DEBT MARKET VIA AN OFFERING OF fiVEYEAR AND 10-YEAR US DOLLAR-DENOMINATED NOTES.

The dual-tranche bonds were priced higher than the benchmark US Treasury notes at 110 basis points (bps) and 130 bps, respectively.

The five-year and 10-year notes carry fixed coupon rates of 5.375 percent and 5.5 percent, respectively.

“We are positively overwhelmed with the high interest we received from global investors for this issuance,” Metrobank President Fabian Dee said in a statement on Thursday.

“It shows their strong confidence in Metrobank’s credit and track record in the Philippines,” he added.

“This offering will fund the bank’s key growth initiatives as we continuously develop innovative financial solutions to serve our clients.”

Proceeds of the issuance, the bank said, will be used to diversify its funding sources and “establish a benchmark for Philippine bank credit in the international capital markets.”

The final order was said to have oversubscribed by more than 11 times, totaling $5.6 billion (approximately P314.5 billion) from global investors.

“We are grateful for the support shown by global investors in our return to the international bond market after a three-and-a-halfyear hiatus,” said Fernand Antonio Tansingco, head of Metrobank’s financial markets sector.

The success of the bond offer was a “clear indication of investors’ trust and confidence in the strongest bank in the Philippines,” he added.

The bonds, issued under the bank’s $2.0-billion medium-term note program, were assigned a rating of Baa2 (lower to medium grade) by Moody’s, at par with the country’s sovereign rating.

Bank of America Securities and UBS acted as the joint global coordinators and bookrunners for the transaction, with MUFG Securities and First Metro Investment Corp. being joint bookrunners.

The Ty-led banking giant last tapped the offshore bond market in July 2020, successfully raising $500 million via the issuance of 5.5-year bonds. These had a fixed coupon rate of 2.125 percent, payable semiannually.

Last year, Metrobank saw its net income grow by 28.9 percent to P42.2 billion from P32.8 billion in 2022, fueled by asset expansion, higher margins and better efficiency levels.

On Thursday, Metrobank shares were down 95 centavos, or 1.51 percent, at P62 each while the benchmark Philippine Stock Exchange index finished up 0.99 percent.