Metrobank Completes PhP32B Stock Rights Offer
Manila–(PHStocks)–Metropolitan Bank & Trust Company (Metrobank, PSE: MBT) today announced the results of its PhP32 billion Stock Rights Offer after the offer period closed on March 27, 2015. The Offer to eligible shareholders of 435,371,720 common shares was priced at PhP73.50 per share. The Rights Shares are expected to be listed on the Philippine Stock Exchange (PSE) on 7 April 2015.The Offer was taken up entirely by the Bank’s existing shareholders, with broad support seen across the shareholder base resulting in a substantial oversubscription. The Bank believes that the success of the Offer represents a strong vote of confidence from investors. The price of the Bank’s shares as 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 Bank believes that 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. Specifically, Metrobank sees these opportunities not only in the large cap business segment, but especially in its core franchise, the middle-market and small to medium enterprises (SME) segments, as well as in the growing consumer space.
The capital raising exercise is expected to enable the Bank to further pursue these business prospects and support its growth momentum. As of December 31, 2014, the Bank’s total asset base expanded by 16% to P1.6 trillion. Loan growth was better-than-expected at 24% to P759 billion, on the back of a 17% growth in deposits to P1.2 trillion. The Bank likewise intends to use its expanded capital base for capacity building by increasing its sales coverage and distribution network.
The additional capital from the Offer is expected to further enhance the Bank’s capital ratios, keeping it well above the Philippine Basel III requirements. Pro forma for the 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 BSP requirement of 10% and 8.5%, respectively.
The Offer was led by J.P. Morgan and UBS as Joint Global Coordinators, Joint International Lead Managers and Joint Bookrunners and First Metro Investment Corporation as Sole Domestic Lead Manager and Joint Bookrunner. HSBC acted as Co-International Manager.