Metrobank unit plans ₱10-billion bond issue

Published October 27, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

ORIX METRO Leasing and Finance Corporation, the leasing and finance arm of the Metrobank Group, is planning to raise up to ₱10 billion from a bond issuance.

For this, ORIX METRO has been assigned an issuer rating of PRS Aa plus (corp.) by Philippine Rating Services Corporation (PhilRatings). The rating has a Stable Outlook.

A company rated PRS Aa (corp.) differs from the highest-rated corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.

The assigned issuer rating for ORIX METRO takes into consideration the company’s status as a leading market player; its strong shareholders and highly experienced management team; and expectations of tempered profitability for the company.

PhilRatings also took into account the sustained overall growth of the leasing and financing industry, despite the slowdown in the domestic economy’s expansion.

ORIX METRO is one of the country’s leading and financing companies, and with services that include: Finance lease, mortgage loans, receivables discounting and operating lease.

Its nationwide network of 112 branches is the largest compared to its peers, while it has 8,046 lease units comprised of cars, pick-ups, vans, and light trucks.

Compared to other big leasing and finance companies which are similarly part of large financial conglomerates (BDO Leasing and Finance, Inc., BPI Century Tokyo Lease and Finance Corporation, and RCBC Leasing and Finance Corporation), ORIX METRO led based on net income, equity base, and asset size as of end-2018.

“ORIX METRO’s forecast margins and returns will be lowered compared to historical, with moderated bottom line growth for the projected period 2019 to 2021,” said PhilRatings adding that this is largely attributable to higher interest expense.