Metrobank prepares stock rights offer
Proceeds of the issuance will fund the bank’s buyout of Metrobank Card Corp. as well as fresh loans.
The Metropolitan Bank & Trust Company (Metrobank) will be issuing 819.8 million common shares to raise fresh capital.
In a disclosure, the bank owned by bilyonaryo George Ty said the bank board has approved a stock rights offer. Timing and price have not been disclosed pending regulatory approvals.
The additional funding will allow the lender to accelerate loan expansion on both corporate and retail clients, with a focus on the middle market and small businesses.
“The capital raising exercise is expected to enable the bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the bank’s sales and distribution network that has rapidly expanded in the preceding years,” Metrobank said.
Additional capital will also equip the bank with funds to acquire the remaining 20 percent stake of ANZ in Metrobank Card. Metrobank already bought half of ANZ’s share in October 2017 at P7.4 billion, with the remaining 20 percent to be purchased by the third quarter.
Metrobank tapped global bank UBS as joint global coordinator and joint bookrunner. Its sister firm First Metro Investment Corporation will also sit as issue manager.