Metrobank cuts short Tier 2 notes offer

MANILA, Philippines - Metropolitan Bank & Trust Co. has shortened the offer period for its capital-raising scheme due to oversubscription, the lender told the Philippine Stock Exchange (PSE).

“Due to the strong demand from both institutional and retail investors, Metrobank has decided to shorten the offer period from the original schedule. To date, the issue is more than two times oversubscribed,” the bank said in its disclosure.

Metrobank closed the public offer for its issuance of Basel III-compliant Tier 2 notes on Tuesday, March 18.

The public offer period started on March 10 and was originally scheduled to end on March 21. Despite the early close, the issue date remains set on March 27.

The notes are only the second Basel-III compliant instrument with a loss absorption feature issued in the domestic market.

With this feature, the notes will be recognized as capital according to Basel III standards.

Metrobank’s Tier 2 notes will have a tenor of 10 years and three months, with the bank having an option to redeem after five years and three months.

The notes carry a coupon rate of 5.375 percent per annum, with interest payments due on a quarterly basis.

Metrobank has commissioned ING Bank N.V.-Manila Branch and Standard Chartered Bank as joint lead arrangers and selling agents for the offer.

Multinational Investment Bancorporation acted as market maker and selling agent while First Metro Investment Corp. and Metrobank are the limited selling agents.