Strong investor appetite pushed Metropolitan Bank & Trust Co. to raise P35 billion from its latest peso bond offering, marking its largest issuance to date and signaling rising demand for sustainability-linked investments.
The Series F ASEAN sustainability bonds, originally set at a P5 billion base offer, drew orders seven times higher, prompting the bank to cap the issuance at P35 billion and close the offer ahead of schedule on 23 March.
The 1.5-year bonds carry a fixed interest rate of 5.4727 percent per annum and have been listed on Philippine Dealing & Exchange Corp.. The offering attracted both institutional and retail investors, reflecting broader interest in instruments tied to environmental and social outcomes.
Proceeds will be used to support lending activities and diversify funding sources, with allocations directed toward green and social projects under the bank’s sustainable finance framework. These include initiatives aimed at environmental sustainability and inclusive economic growth.
The framework has been assigned an SQS2, or “very good,” rating by Moody’s Ratings, indicating alignment with international sustainability standards and measurable impact targets.
“We are encouraged by the strong response to this issuance, which reflects the trust our clients and partners continue to place in Metrobank,” said John Lu, head of the bank’s Treasury Group.
The transaction highlights a growing shift among Philippine lenders toward tapping sustainable debt markets, as investors increasingly seek opportunities that combine financial returns with social and environmental impact.