Metrobank closes subordinated notes offering ahead of schedule

MANILA, Philippines- Metropolitan Bank & Trust Co., one of the country's largest lenders in terms of assets, reported that it closed its offer of unsecured subordinated lower Tier 2 ahead of schedule owing to influx of subscription. Metrobank told the Philippine Stock Exchang that the P4.5-billion capital-raising activity was supposed to run between April 20 and April 29, but closed it after three days of offering. "As of yesterday, we have received application of more than P4.5 billion," said Fernando Antonio Tansingco, Metrobank executive vice president and treasurer. Investors filled the entire P4.5-billion issues in the first three days of the planned nine-day offer period. The issuance has received an investment grade Baa3 rating from Moody's Investors Service. The ratings reflect Metrobank's dominant size, established brand name, and strong platform for expansion of its consumer finance business, Moody’s said in a statement. Moody’s rating scale is divided into two sections: investment grade and speculative grade. The lowest investment grade rating is Baa3. Metrobank has been authorized to issue up to P10 billion in lower Tier 2 notes wherein P5.5 billion was sold in October 2008. Moody's said the rating is subject to the receipt of final documentation although the terms and conditions of are not expected to change in any material way from the draft documents it has reviewed. The last rating action for Metrobank was taken on August 28, 2008, when the Baa3/stable outlook for its peso-denominated lower Tier 2 notes due 2018 was assigned. GMANews.TV