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April 24, 2024

Metrobank raises $1 billion in record bond offering, sets benchmark for Philippine issuers

The Ty family’s Metropolitan Bank and Trust Co (Metrobank) successfully raised $1 billion in a bond offering, the largest non-sovereign U.S. dollar issuance by a Philippine company and the first 10-year bond from a private Philippine bank.

The proceeds will be used to broaden the bank’s funding channels and establish a benchmark for Philippine bank credit in global capital markets.

With participation from investors across Asia Pacific, Europe, the Middle East, and Africa, the offering attracted over $5.6 billion in tenders, exceeding the target by an impressive 11 times.

The 5-year and 10-year bonds carry fixed coupon rates of 5.375% and 5.50%, respectively, and were assigned investment-grade ratings of Baa2 by Moody’s, aligning with the Philippines’ sovereign debt.

The 5-year tranche also achieved the tightest credit spreads among non-sovereign Philippine issuers, the bank said.

This milestone transaction positions Metrobank as a leading issuer in the international debt capital markets and demonstrates continued strong investor confidence in the Philippines.

In terms of investor distribution, 86% originate from the Asia Pacific (APAC) region, with the remaining 14% from Europe, the Middle East, and Africa (EMEA).

Bank of America Securities and UBS served as joint global coordinators, while MUFG Securities and First Metro Investment Corp. acted as joint bookrunners for the transaction.