Metrobank Card raises P1.3 billion via private placement

MANILA, Philippines – Metrobank Card Corp.. (MCC) has raised P1.3 billion through a private placement of unsecured subordinated debt notes. The issue of notes with a 10-year term, a call option at the end of the fifth year and step-up interest rate feature, was oversubscribed and comes after MCC’s successful P3-billion three-year fixed rate corporate note transaction in March 2009.  

The issue qualifies as part of MCC’s Lower Tier 2 (LT2) capital. MCC issued LT2 notes to 19 investors after receiving approval from the Bangko Sentral ng Pilipinas (BSP). 

MCC, a joint venture between Metropolitan Bank and Trust Co. (Metrobank) and Australia and New Zealand Banking Group Ltd. (ANZ), is among the top credit card issuers in the country in terms of cardholders, billings and receivables.

MCC president Claire Ann Yap, said: “The oversubscription of the issue despite the current global economic situation is testament of the high level of confidence of investors in MCC.

“MCC is pleased with the continued support of the capital markets as we continue to grow our business to become the top credit card provider for customers in the Philippines,” she added.

The notes were issued to strengthen the company’s capital base which will pave the way for further growth in the company’s credit card receivables. The investment arm of Metrobank, First Metro Investment Corp. (FMIC), and ANZ, through its Manila office, were co-lead managers for the issue. FMIC also served as sole placement manager.