First Metro Investment lists P7-B fixed rate bonds on PDEx

First Metro Investment Corporation, the Metrobank Group's investment-banking arm, on Wednesday said it listed P7-billion worth of fixed rate corporate bonds on the Philippine Dealing and Exchange Corp. (PDEx).

 

The bonds are due November 2017 and August 2019.

 

The bond issue comprises P3 billion worth of seven-year bonds and P4 billion worth of five-year and three-month bonds. 

 

The seven-year bonds have a fixed interest rate equivalent to 5.75 percent a year, while the five-year bonds have a fixed interest rate equivalent to 5.50 percent a year. 

 

The bonds qualify as securities exempt from registration under the Securities Regulation Code.

 

“The First Metro Bonds was very well received by the market with an oversubscription of over 40 percent, driving up demand from the original issue size of P5 billion to P7 billion,” said First Metro president Roberto Juanchito Dispo.

 

“It generated interest from a wide and varied investor base – banks, foundations, insurance and trust companies, retirement and mutual funds, corporates, high net worth individuals, and retail buyers,” Dispo noted.

 

“The biggest clamor, however, came from retail investors as 65 percent of the bonds was sold to them through the trust departments of 11 banks that participated in the debt sale,” he added.

 

Proceeds from the debt offer will be used by First Metro to lengthen the company’s deposit tenor base.

 

Standard Chartered Bank was the sole bookrunner and underwriter for the transaction.

 

This listing on PDEx, the ninth for the year, brings new corporate and bank debt listings to P97.85 billion in the year-to-date and the total level of tradable corporate and bank debt instruments to P273.23 billion issued by 16 companies, with 45 securities. — VS, GMA News