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Metrobank raises P16-B in Tier 2 capital

Posted at 03/24/2014 11:44 AM

MANILA, Philippines - Metropolitan Bank & Trust Company said it raised P16 billion from the issuance of debt notes as it complies with the Basel III capital framework imposed by the central bank.

Metrobank said the transaction was 2.7 times oversubscribed with strong demand from both institutional and retail investors. Because of the demand, Metrobank closed the offer three days early and doubled the issue size to P16 billion.

The settlement date is set on March 27, 2014.

"We are very pleased with the overwhelming demand for our Notes and the strong display of investor confidence in Metrobank. We would like to thank the investing community for their support. Proceeds from this transaction will help us capitalize on growth opportunities amidst strong economic prospects," Metrobank President Fabian S. Dee said.

The newly issued Tier 2 Notes were priced at a coupon rate of 5.375%, or 151 basis points over the 5-year PDST-F government benchmark.

The notes will mature in June 2024 but Metrobank has the call option to redeem the Notes early in June 2019.

The notes are the second Basel III compliant instrument issued in the domestic market with a loss absorption feature. This allows the instrument to be recognized as bank capital in accordance with Basel III standards.