Metrobank completes P32 B stock offering

MANILA, Philippines – Metropolitan Bank & Trust Company (Metrobank) announced on April 5, the successful completion of its P32 billion ($721 billion) stock rights offer.

Metrobank had offered 435,371,720 common shares to eligible shareholders, priced at P73.50 ($ 1.65) per share. The shares are expected to be listed on the Philippine Stock Exchange (PSE) on April 7.

Metrobank disclosed that the shares offer was taken up completely by existing shareholders and that broad demand resulted in substantial oversubscription. This, Metrobank believes, is a vote of confidence on the part of investors.

The bank’s shares traded on the PSE has risen 21% since the start of 2015, compared to the overall PSE Index’s increase of 9.5% over the same period.

The continued strengthening of the Philippine economy, a growing middle class, and low credit penetration create sustainable attractive growth opportunities for the banking sector in general, Metrobank said in a statement.

The capital raising exercise is expected to enable Metrobank to further pursue these business prospects and support its growth momentum.

As of December 31, 2014, Metrobank’s total asset base expanded by 16% to P1.6 trillion ($36 billion) while loan growth was better-than-expected at 24% to P759 billion ($17.1 billion), on the back of a 17% growth in deposits to P1.2 trillion ($27 billion).

Metrobank also intends to use its expanded capital base for capacity building by increasing its sales coverage and distribution network.

The additional capital is also expected to further enhance the Bank’s capital ratios, keeping it well above the Philippine Basel III requirements.

Before the shares offer, the Bank had a total capital adequacy ratio (CAR) of 19.4%, and common equity tier 1 (“CET1”) of 15.5% as of December 31, 2014, with both ratios well above the minimum Bangko Sentral ng Pilipinas (BSP) requirement of 10% and 8.5%, respectively. –Rappler.com

US$1 = P 44.3