Metrobank extends P20.5 billion financing to Aboitiz firms

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) has provided a P20.5-billion loan facility to two entities owned by Aboitiz Equity Ventures Inc. (AEV) for refinancing and general corporate requirements.

The bank, owned by the family of the late taipan George SK Ty, has extended a P15 billion loan to the Aboitiz Group’s Therma Luzon Inc., a unit of power business arm Aboitiz Power Corp.

The 10-year loan facility maturing in 2032 will primarily finance a portion of its remaining independent power producer administrators (IPPA)-related obligations to government-run Power Sector Assets and Liabilities Management Corp. (PSALM).

Likewise, the Aboitiz Group’s LIMA Land Inc. also tapped Metrobank for a P5.5- billion loan to finance the expansion of its real estate business in the LIMA Estate ecozone.

The unit of Aboitiz InfraCapital Inc. aims to double the footprint of its LIMA Estate in Batangas City into the next 10 years from the current 800 hectares in Lipa and Malvar.

Present in the loan signing were Aboitiz Power chief finance officer Liza Montelibano, Aboitiz Group treasurer Veronica So, AEV outgoing chief finance officer Manuel Lozano, Metrobank Institutional Banking Sector head Mary Mylene Caparas, and Metrobank Large Corporates Division and Corporate Banking Group head Rose Tiamson.

Metrobank has been tapping the both the onshore and offshore debt market to finance its aggressive expansion program and to beef up its lending portfolio.

Last October, the Ty-led bank successfully raised P23.7 billion, more than double the original issue size of P10 billion, despite ending the offer period of its peso-denominated bond ahead of schedule due to strong demand.

Metrobank senior executive vice president and head of Financial Markets Sector Fernand Antonio Tansingco earlier said the overwhelming response to the bond offering affirms that there is still strong demand for high quality issuers like Metrobank despite the uncertainties.

According to the bank, proceeds will  be used to refinance maturing issuances and diversify its peso funding sources while supporting its operations.

“The funds raised will mainly be used for the bank’s general capital requirements, including refinancing of some maturing issuances,” Tansingco said.