Metrobank plans SRO worth B

Metropolitan Bank & Trust Company is planning to conduct a Stock Rights Offer (SRO) of common shares with a market value of about R82 billion to fund the growth of its lending activities as well as acquire 20 percent of its credit card subsidiary.

In a disclosure to the Philippine Stock Exchange, Metrobank said its board has approved the SRO through the issuance of up to a maximum of 819.83 million common shares which is equivalent to the remaining unissued shares from the Bank’s authorized capital stock.

Timing and size of the transaction are subject to other details such as the offer price and are subject to receipt of regulatory approvals as well as market and other conditions. Metrobank shares were trading at R98.10 to R107.40 apiece yesterday.

“The Bank believes that the robust growth of the Philippines will continue to support the prospects for accelerated loan expansion across the various segments of the economy,” it said.

Metrobank added that it 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 (SME) segments.

“Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage,” the bank said.

Over the last six quarters, Metrobank has consistently delivered over 20 oercent loan growth, faster than the industry average. The Bank’s total asset base is currently the second largest amongst Philippines banks at R2.0 trillion as of September 30, 2017.

“The capital raising exercise is expected to enable the Bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the Bank's sales and distribution network that has rapidly expanded in the preceding years,” Metrobank said.