Metropolitan Bank & Trust Company (Metrobank) has launched its P10 billion Peso-denominated SEC registration-exempt fixed-rate bond offering with the option to upsize.

In a disclosure to the Philippine Stock Exchange, the bank said its bonds will have a tenor of five and a quarter (5.25) years and an interest rate of 3.60 percent p.a., payable quarterly.

The minimum investment amount is P500,000 and in additional increments of P100,000. The offer period will run from May 6 to 24, 2021, subject to appropriate adjustments under market conditions. 

The Bonds are intended to be issued and listed on the Philippine Dealing Exchange (PDEx) on June 4, 2021.

Proceeds will be used for general working capital needs and diversification of the bank’s funding sources.

First Metro Investment Corporation (First Metro) and The Hongkong and Shanghai Banking Corporation Limited (HSBC) are the Joint Lead Managers and Joint Bookrunners of the offer.

Metrobank, together with Joint Lead Managers and Joint Bookrunners, are the Selling Agents of this issuance.

It has raised an aggregate of P81.0 billion from offerings of Peso bonds since November 2018. 

Metrobank reported a 27.1 percent hike in net income to P7.8 billion in the first quarter this year from the P6.1 billion earned in the same period of 2020.

The bank said its robust net income growth was due to stable asset quality, strong non-interest income performance, and marginal rise in operating expenses.

“Our strategy and prudent approach last year paved the way for a strong start in 2021,” said Metrobank President Fabian S. Dee.

He added that, “Our capital position is double the regulatory minimum, with capital adequacy ratio (CAR) of 19.9 percent and Common Equity Tier 1 (CET1) of 19.0 percent.”

Dee noted that, “Our reserves also cover 166 percent of our non-performing loans (NPL). This ensures that Metrobank will sustain its business resilience, and we remain confident that the Bank is ready to take on opportunities as the economy recovers.”

“We are in a strong position to withstand a resurgence in asset quality risks and we remain vigilant even as we all continue to battle the pandemic,” Dee said.

Non-interest income surged by 28 percent year-on-year (YoY) to P7.9 billion. Fee-based revenue is stable at P3.3 billion despite business activities still being slower than pre-pandemic levels.

Trust fee income grew at a robust 20 percent, in line with the 30 percentgrowth in assets under management.  To top it off, trading and foreign exchange gains doubled to P2.9 billion as the Treasury group realized gains prior to the reversal of yields.