By Jennifer Chiou
New York, April 23 - Metropolitan Bank & Trust Co. said it decided to close its offering of PHP 4.5 billion of lower tier 2 step-up callable subordinated notes prior to the projected April 29 closing date thanks to overwhelming demand.
"As of yesterday, we have received applications of more than PHP 4.5 billion," executive vice president and treasurer Fernand Antonio Tansingo said in a Thursday news release. The offering was filled within three days of the planned nine-day offering period.
The coupon will be 7½%, and the settlement date is slated for May 6.
ING Bank NV, Manila Branch and Standard Chartered Bank are the joint lead arrangers and selling agents. Multinational Investment Bancorp. and PNB Capital and Investments Corp. also are selling agents, and Metrobank and First Metro Investment Corp. are limited selling agents.
Proceeds will be used to bolster the bank's capital base.
The bank said on Sept. 4, 2008 that it planned to issue up to PHP 10 billion of 10-year unsecured subordinated debt eligible as lower tier 2 capital.
Of that amount, PHP 5.5 billion was issued in October 2008. The Makati City, Philippines-based bank issued the 10-year notes at 7¾% per year. Proceeds were to be used to help refinance $200 million of lower tier 2 notes, which Metrobank planned to call in December.
The bank previously 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.
| Issuer: | Metropolitan Bank & Trust Co.
|
| Issue: | Lower tier 2 step-up callable subordinated notes
|
| Total amount: | PHP 10 billion
|
| Maturity: | 10 years
|
| Agents: | ING Bank NV Manila Branch and Standard Chartered Bank (leads), Multinational Investment Bancorp., PNB Capital and Investments Corp., Metrobank and First Metro Investment Corp.
|
| Call option: | In year five
|
| Rating: | Moody's: Baa3
|
|
|
| 7¾% notes
|
| Amount: | PHP 5.5 billion
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Settlement date: | Oct. 3, 2008
|
|
|
| 7½% notes
|
| Amount: | PHP 4.5 billion
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Settlement date: | May 6, 2009
|
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