Metrobank closes P4.5-billion LT2 offer early

MANILA, Philippines – Metropolitan Bank & Trust Co. (Metrobank) reported that its offer of Lower Tier 2 peso-denominated step-up callable subordinated notes (LT2 notes) worth P4.5 billion was very well-received by investors, prompting the bank to close the order book ahead of schedule.

Metrobank started the offer period last April 20, 2009 with the closing date on April 29, 2009.

“As of yesterday, we have received applications of more than P4.5 billion,” said Metrobank executive vice president and treasurer Fernand Antonio Tansingco.  Investors filled the entire P4.5-billion issue in just the first 3 days of the planned nine-day offer period.

“Once again, we are very pleased with the overwhelming response for the issue, a testament to continuing investors’ confidence in the bank,” Tansingco added.

Moody’s Investors Service has assigned a Baa3 rating to the issue. The purpose of the offer is to further boost and strengthen the bank’s capital base. Metrobank had earlier received Bangko Sentral ng Pilipinas (BSP) approval to issue up to P10 billion in LT2 unsecured subordinated notes, of which the first tranche amounting to P5.5 billion was raised in October 2008.

ING Bank and Standard Chartered Bank are the joint lead arrangers, bookrunners, selling agents, and market makers for the issue. Multinational Investment Bank Corp. and PNB Capital and Investments Corp. are also the selling agents. Metrobank and First Metro Investment Corp. are limited selling agents.

The LT2 notes will have a maturity date of 10 years from the issue date, with a call option at the end of the fifth year, subject to a step-up interest rate feature. Metrobank may redeem the notes in whole, but not in part, at a price equal to 100 percent of the principal plus accrued and unpaid interest at the end of the fifth year subject to approval of the BSP.