"It will also be our first underwriting job this year," Roberto Juanchito T. Dispo, First Metro senior vice president told The STAR.
The guiding interest rate for the bond will be determined via the Dutch auction to be conducted by First Metro, a day before the bond issue. Target date for the issuance is the middle of April this year.
It will have a five-year FXTN plus a certain spread said to be not lower than 1.75 percent, and "subject to market sounding."
The bond issuance is to raise capital for AMA’s expansion program, both domestic and international.
AMA will be establishing an IT university in Cavite to be known as the AMA University Town. For its international expansion, AMA plans to erect a computer school in China to complement its already operating centers in Bahrain, Thailand and Hong Kong.
One unique feature is that a buyer of the bond can exchange it into tuition fee credits if he or she plans to enroll in any of the AMA schools. The minimum bid per institution is P80 million.
The documentary stamp tax will be shouldered by AMA, and when approved by the Bangko Sentral ng Pilipinas (BSP), participating banks can use it as an alternative compliance to the Agri-Agra Law.
Last year, First Metro led various capital-raising activities with a total of P75 billion for both government and private corporations, making First Metro the most active and largest investment bank not only in terms of capital but capital raised as well last year.
First Metro Investment is a subsidiary of the Metropolitan Bank and Trust Co., the biggest local commercial bank in terms of assets.