Metrobank eyes P5-B Asean sustainability bond issue 

Metropolitan Bank & Trust Co. (Metrobank) plans to issue at least P5 billion in Association of Southeast Asian Nations (Asean) Sustainability peso-denominated fixed-rate bonds as it seeks to diversify funding sources while supporting its lending activities.

The Ty family-led bank disclosed on Wednesday that the proposed offering would carry a tenor of one and a half years and include an oversubscription option, subject to market conditions.

Metrobank said the planned issuance would form part of its broader P154.5-billion program. This falls under the bank’s previously approved P200-billion bonds and commercial papers program authorized by its board of directors on Dec. 15, 2021.

The planned offering represents the lender’s first Asean Sustainability peso-denominated fixed-rate bond issuance.

Proceeds from the planned issuance will be used to diversify Metrobank’s funding sources while supporting lending operations. The funds will also be allocated to finance or refinance eligible assets in line with the bank’s sustainable finance framework.

Metrobank tapped First Metro Investment Corp., ING Bank NV, Manila Branch and Standard Chartered Bank as joint lead managers and joint bookrunners for the planned bond issuance.

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The bank, rated Baa2 with a stable outlook by Moody’s and BBB- with a stable outlook by Fitch, said the planned issuance remains subject to market conditions.

The move reflects the bank’s continued push to strengthen its funding base while channeling resources toward financing projects aligned with sustainability principles.