Metrobank sets terms for P60-B stock rights

Metropolitan Bank & Trust Co. has finalized the terms of its P60-billion fundraising involving the sale of about 799.84 million shares to existing shareholders.

The country’s second largest lender said eligible shareholders are entitled to subscribe to one rights share priced at P75 each for every 3.976 common shares owned as of March 21.

The bank said the price reflects a 22 percent discount to the 10day volume-weighted average price of its common shares listed on the Philippine Stock Exchange.

Metrobank said the stock rights offer starts on March 22 and ends on April 4.

Controlling and majority shareholders led by GT Capital Holdings of taipan George SK Ty have committed to subscribe to at least its full rights entitlement in the stock rights offer.

The bank has tapped UBS AG, Hong Kong Branch as joint global coordinator, joint bookrunner and international underwriter, while First Metro Investment Corp. would serve as issue manager and domestic lead underwriter. DBS Bank Ltd. is acting as co-manager and counderwriter.

A portion of the proceeds of the fundraising activity would be used to purchase the remaining 20 percent equity stake of ANZ Funds Pty. Ltd. in Metrobank Card Corp. (MCC) by the third quarter of the year.

The Ty-led bank has already acquired the 20 percent interest of its foreign joint venture partner for P7.4 billion after securing the approval of the Bangko Sentral ng Pilipinas last December.

After the transaction, MCC will become a wholly owned subsidiary of Metrobank. It is the industry leader in terms of cards-in-force and receivables based on the latest data from the Credit Card Association of the Philippines.

Metrobank said the robust growth of the Philippines would continue to support the prospects for accelerated loan expansion across the various segments of the economy.

“Metrobank seeks to capitalize on the growth opportunities of large cap corporates and especially in its core franchise, the middle market and small to medium enterprises segments,” it added.

The bank pointed out that the rising per capita levels would also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage.

Metrobank booked a net income of P18.2 billion as its assets rose to a record P2.1 trillion last year. It ended 2017 with 952 branches and 2,352 ATMs nationwide.