Metropolitan Bank and Trust Company (Metrobank) completed the P18-billion reissuance of its two-year fixed rate bonds, thrice an upsize from the initial plan to reissue P5 billion worth of bonds.
In a regulatory filing, the bank said the reissuance, issued and consolidated to form a single series with the P10 billion 7.15 percent fixed-rate bonds due 9 November, sated the overwhelming demand for the instrument.
This increased the total raised from the bonds to P28 billion, the largest peso bank bond sale to date, Metrobank said.
“This serves as a landmark transaction as it is the first ever tap of a peso-denominated bond issuance and the largest ever reissuance in the peso debt capital markets by a Philippine corporate.”
The bank also said strong investor demand paired with strong credit led to the decline in the overall cost of the bond and credit spread. The reissuance carries an interest rate of 7.00 percent to be paid quarterly.
“This serves as a significant milestone for Metrobank who has consecutively proven its ability to always be the first to market, and pioneer a reopening following its successful maiden issuance last November. This transaction has been very timely for Metrobank as we continue to prepare for a strong start coming into 2019,” Metrobank president Fabian Dee said in the disclosure.
The bond issuance is part of the listed bank’s P100-billion bond and commercial paper issuance to raise funds for its expansion plans.