Philippines' Metrobank gets OK to issue up to PHP 10 billion of 10-year subordinated debt

By Angela McDaniels

Tacoma, Wash., Sept. 4 - Metropolitan Bank & Trust Co. plans to issue up to PHP 10 billion of peso-denominated 10-year unsecured subordinated debt eligible as lower tier 2 capital.

The potential issuance received approval from the Philippine Monetary Board on Friday, according to a notice filed with the Philippine Stock Exchange.

The debt will be issued in single or multiple tranches.

The bank said interest will equal the five-year Philippine Dealing System Treasury Fixing plus a spread with moderate step-up.

The debt will have a call option after a minimum of five years.

ING Bank NV and Standard Chartered Bank will be the joint lead arrangers. They - along with Multinational Investment Bancorp. and, to a limited extent, Metrobank and First Metro Investment Corp. - will also be the selling agents.

The Makati City, Philippines-based bank said the purpose of the issuance is to increase and strengthen its capital base and to partially refinance its $200 million unsecured subordinated debt, which is callable in December.

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