Metrobank eyes return to offshore debt market

Metropolitan Bank & Trust Co. (Metrobank) is returning to the offshore debt market to raise at least $500 million to diversify the bank’s funding sources and support its operations.

In a disclosure, the Ty-led bank said it is set to issue Reg S only dollar-denominated senior unsecured notes, subject to market conditions.

Metrobank president Fabian Dee has approved the planned fund raising activity.

“Proceeds will be used to diversify the bank’s funding sources while supporting its operations,” Metrobank said.

The bank has mandated BofA Securities and UBS as joint global coordinators and bookrunners, while MUFG and First Metro Investments Corp. were tapped as joint bookrunners.

The offering was rated Baa2 by Moody’s Investors Service and BBB- by Fitch Ratings, both investment grade.

Metrobank established a medium-term note program worth up to $2 billion or its equivalent in other currencies in March 2017 to fund its expansion program.

The bank last tapped the offshore debt market during the height of the COVID-19 pandemic in July 2020 when it raised $500 million via the issuance of senior unsecured notes.

The fundraising activity was five times oversubscribed with 120 investors at its peak, reflecting investors’ strong confidence on Metrobank’s credit. Metrobank grew its net income by 28.9 percent to a record P42.24 billion in 2023 from P32.78 billion in 2022, driven by asset expansion, higher margins, improving efficiency levels and better asset quality.

The bank has an extensive consolidated network that spans over 940 domestic branches nationwide, more than 2,300 ATMs, and above 30 foreign branches, subsidiaries, and representative offices.