First Metro Investment eyes P30-B bond issues

First Metro Investment Corp. (First Metro Investment) has several underwriting assignments in the pipeline amounting to a combined P30 billion.

Roberto Juanchito T. Dispo, First Metro senior vice president added that they have been working on several with the hope of surpassing their performance last year despite the poor economic conditions prevailing.

Last year, First Metro led various capital-raising activities amounting to a combined P75 billion for both government and private corporations. So far, the amount involved unofficially made First Metro the most active and largest investment bank not only in terms of capital but capital raised last year.

First Metro Investment Corp. is a subsidiary of the Metropolitan Bank and Trust Co., the biggest local commercial bank in terms of assets.

By the next quarter of the year, First Metro Investments will launch a bond issue for the Philippine Postal Corp. The plan is to raise P5 billion as capital for the modernization of the country’s postal service and facilities.

Philippine Postal is one of the government corporations being propped up for privatization. Dispo said that the fund raising activity was designed to upgrade and modernize the post office to make it attractive for privatization.

First Metro Investments also have some P25 billion of different bond issues being worked out. The timetable for each issue differs depending on the way the market responds.

A lot also depends on the outcome of the US-Iraq conflict.

Earlier, First Metro Investment underwrote a P1.5 billion bond sale issued by the AMA Education Corp. and AMA Computer University Inc. It is the first information technology (IT)-related bond issuance done in the Philippines this year.

"It is also our first underwriting job this year," Dispo admitted.

The guiding interest rate for the P1.5 billion AMA IT Bond will be determined via the Dutch auction. 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 for capital raising for AMA’s expansion program both domestic and international.

AMA will be establishing an IT university in Cavite.

For its international expansion, it plans to erect a computer school in China to compliment its already operating centers in Bahrain, Thailand and Hong Kong. – TPT