Business World - - Bank­ing&fi­nance - Karl An­gelo N. Vi­dal

Met­ro­pol­i­tan Bank & Trust Co. re­cently raised P10 bil­lion via fixed-rate bonds, part of its P100-bil­lion bond and com­mer­cial pa­per pro­gram an­nounced last month.

Prior to the new and “mar­ket-friendly” reg­u­la­tion, banks usu­ally raise fresh funds by is­su­ing long-term cer­tifi­cates of de­posits, which carry a tenor of more than five years.

“The re­serve re­quire­ment of a bond is much lower than the de­posit. So in terms of ac­tual cost of the bank, it’s ac­tu­ally cheaper than a sim­i­larly priced time de­posit,” Mr. Paner added.

“The sav­ings in the cost would be shared. Some of that would ac­crue on the bank be­cause of the sav­ing, while some of them would ac­crue to the in­vestors be­cause we’re giv­ing them higher yields.”

The Hongkong and Shang­hai Bank­ing Corp. Ltd. acted as the sole lead man­ager and bookrun­ner of the peso bond is­suance. It was also the sell­ing agent along­side BPI Cap­i­tal Corp.

BPI’s listing brings the to­tal vol­ume of out­stand­ing se­cu­ri­ties listed at the PDEx to P1.002.27 tril­lion, floated by 50 com­pa­nies.

Ear­lier this year, BPI com­pleted a P50-bil­lion rights of­fer, with the pro­ceeds fund­ing its busi­ness op­er­a­tions and ex­pan­sion.

The bank also raised $600 mil­lion in Au­gust through a draw­down from its $2-bil­lion medium-term note pro­gram, which it said was the largest is­suance by a lo­cal lender in the off­shore debt mar­ket.

Look­ing ahead, Mr. Paner said the lender is look­ing at re­turn­ing to the off­shore bond mar­ket next year, as they are “con­tem­plat­ing on [is­su­ing] green bonds,” or debt notes specif­i­cally al­lot­ted for en­vi­ron­men­tal or climate projects.

The Ay­ala-led bank re­ported a P5.98-bil­lion net profit in the third quar­ter on the back of the dou­ble-digit ex­pan­sion of its net in­ter­est in­come.

BPI shares went down 30 cen­tavos or 0.32% to close at P93.20 apiece on Thurs­day.

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