Metropolitan Bank & Trust Company (PSE: MBT) (the "Issuer" or "Metrobank") successfully priced a US dollar-denominated Reg-S 5.5-year offering at an aggregate principal amount of US$500 million with a fixed coupon of 2.125% payable semi-annually. Metrobank is rated Baa2 Stable by Moody's and BBBStable by Fitch.
The Notes were priced at US Treasury spreads of T+200 bps, after initial price guidance of T+235 bps area. The order book was in excess of 5x times oversubscribed with 120 investors at its peak. This reflects the strong confidence investors' have in Metrobank's credit.
In terms of distribution, the order book was allocated predominantly to Asia (81%), and the remaining to EMEA (19%).
The issuance of the Notes represents the first senior notes of Metrobank in the international capital markets, matching the lowest coupon for a Philippine borrower.
"We are very pleased with the outcome of the successful issuance which confirms the confidence and strength of Metrobank's name and track record in the Philippines. This bond issuance will further enhance our business strength and optimize our capital structure especially in this current market environment," said Fabian Dee, President of Metrobank.
"We are thankful for the strong support from the global investors after our re-entry in 17 years. The successful 5.5-year USD-denominated issuance will allow us to diversify our funding sources and shore up our financial position as we prepare for a bounce back and recovery," added Fernand Antonio Tansingco, Head of the Financial Markets Sector.
Upon issuance, the net proceeds from the bonds will be used to tap longer-term offshore funding, diversify Metrobank's funding sources and finance maturing short-term borrowings.
UBS AG Hong Kong Branch and First Metro Investment Corporation are the Joint Global Coordinators and Joint Bookrunners for the transaction. Mitsubishi UFJ Financial Group and SMBC Nikko Securities Inc acted as the Joint Lead Managers.
About Metrobank
Founded in 1962, Metropolitan Bank & Trust Company (Metrobank) is a premier universal bank and is currently the second largest bank in the Philippines in terms of total assets which stood at PHP2.4 trillion as of 31 March 2020. Metrobank offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking. Metrobank's consolidated network spans over 2,300 ATMs nationwide, 960 domestic branches, and over 30 foreign branches, subsidiaries, and representative offices. The majority shareholder is the Ty Family whose major business interests include financial services, auto services, real estate development, infrastructure, and utilities.
Investor Relations Contact
Email Address: investor.relations@metrobank.com.ph
Summary Terms and Conditions for the Notes
| Issuer: | Metropolitan Bank & Trust Company |
|---|---|
| Issuer Rating: | Baa2 Stable / BBB- Stable (Moody's / Fitch) |
| Expected Issue Rating: | Baa2 by Moody's |
| Issue: | US$ Senior Unsecured Notes |
| Format: | Regulation S (Cat 1); drawdown under the existing U$2.0 Billion MTN Programme |
| Size: | US$ 500m |
| Interest Payment: | Fixed rate coupon, payable semi-annually |
| Coupon: | 2.125% |
| Re-offer Spread: | CT5+200bps |
| Re-offer Price/Yield: | 99.096% / 2.301% |
| Tenor: | 5.5 years |
| Maturity Date: | 15 January 2026 |
| Settlement Date: | 15 July 2020 (T+5) |
| Form and denomination: | Regulation S only registered US$200,000 and integral multiples of US$1,000 in excess thereof |
| Listing: | SGX-ST |
The securities referred to herein will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States or any other jurisdiction. Any securities as referred to herein will only be offered and sold outside the United States in reliance on Regulation S under the Securities Act and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offering of any securities referred to herein will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.
This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or elsewhere where such offer or sale would be unlawful. Release, transmission or distribution to any person is prohibited. No money, securities or other consideration is being solicited by this announcement or the information contained herein and, if sent in response to this announcement or the information contained herein, will not be accepted.
The securities referred to herein have not been registered with the Philippine Securities and Exchange Commission under the Securities Regulation Code ("SRC"). Any future offer or sale of the securities is subject to the registration requirements under the SRC unless such offer or sale qualified as an exempt transaction.