MANILA, Philippines — Despite the rise in interest rates, the Bureau of the Treasury's (BTr)…
P23.7-B 1.5-year bond is listed by Metrobank.
Metropolitan Bank & Trust Co. (Metrobank) listed its PHP23.7 billion 1.5-year fixed rate bond with a coupon rate of 5% at the Philippine Dealings and Exchange Corp. (PDEx) on Friday.
The bank claimed in a news release that overwhelming demand led them to increase the issue amount from the initial PHP10 billion offering and even reduce the offer time to October 17 instead of October 19.
“To meet the very strong interest, we had to extend our inaugural bond offering by more than two times over the PHP10 billion we had initially disclosed due to demand from both retail and corporate clients. According to Fernand Antonio Tansingco, senior executive vice president of Metrobank and head of the Financial Markets Sector, the money collected will mostly be utilized for the bank’s general capital requirements, including refinancing of some maturing issuances.
He said that the “overwhelming response” to their bond offering “affirms that there is still strong demand for high-quality issuers like Metrobank,” notwithstanding the uncertainty.
“It is fitting that Metrobank, the bank that pioneered bond issuance post-the change in BSP (Bangko Sentral ng Pilipinas) regulations back in 2018, is the one that pushes the level of annual bond listings above the PHP400 billion milestone,” PDEx President and Chief Executive Officer Antonino Nakpil said.
“The primary market is the shining light for 2022, with the issuer community really demonstrating that it is back with fury following a dismal 2021. Domestic investors have responded with more than enough money, and corporate and bank issuers have kept the public financing system running, he said.
The latest debt paper issuance, according to the bank, is a part of its expanded PHP200 billion Bond and Commercial Paper Program, which was approved by its Board of Directors on December 15, 2021.
First Metro Investment Corp., ING Bank NV, Manila Branch, and Standard Chartered Bank were chosen by the company to serve as joint lead managers and joint book runners for the offer while serving as the selling agents alongside Metrobank.
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