Metrobank gets go-signal for P25 billion LTNCD issuance

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has given Metropolitan Bank and Trust Co. (Metrobank) the go-signal to raise P25 billion through the issuance of long term negotiable certificates of deposits (LTNCDs).

In a disclosure to the Philippine Stock Exchange (PSE), Metrobank said the central bank approved on Jan. 10 the bank’s application to issue P25 billion worth of LTNCDs over a period of one year.

The debt papers will have a tenor ranging from 5.5 to 10 years, with each tranche amounting to at least P2 billion.

Metrobank has been undertaking a series of fund raising activities in the domestic market to finance its aggressive expansion program as well as to beef up its lending portfolio.

The listed bank has so far raised P35.33 billion from previous issuances of LTNCDs, including P8 billion in October 2014, P6.25 billion in November 2014, P8.65 billion in September 2016, P3.75 billion in July 2017, and P8.68 billion in October last year.

Last October, the bank also launched the latest tranche of its P100 billion bond commercial paper program, raising at least P13.75 billion.

So far, Metrobank has raised P70.5 billion out of its P100-billion bond and commercial paper program. It also raised P10 billion in November, followed by P18 billion last December and another P17.5 billion last April.

It also raised P60 billion from the sale of new shares to existing shareholders led by GT Capital Holdings through a stock rights offer last April to further enhance its capital ratios, keeping it well above the Basel III requirements.

Earnings of Metrobank jumped by 49 percent to P8.5 billion in the third quarter of 2019 from P5.7 billion in the same quarter last year.