Sunday, 2 May 2010

Metrobank raises P5b from private placement

by Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/may/1/business3.isx&d=2010/may/1

Metropolitan Bank and Trust Co. on Friday said it has raised P5 billion in primary capital through a private placement to strengthen its position in the banking sector.

UBS acted as sole book-runner for the placement, which is expected to close on May 6. The placement and subscription were priced at P48 per share.

“The proceeds of the offer will serve to further enhance Metrobank’s Tier 1 capital ratio, anticipate Basel III regulatory requirements and facilitate further loan growth,” said Jette Gamboa, the bank’s investor relations officer.

The bank’s consolidated capital adequacy ratio stood at 15.0 percent as of the first quarter of 2010, while Tier 1 ratio was 10.4 percent.

Gamboa said the bank launched and priced the P5 billion overnight top-up placement, in which certain shareholders agreed to sell about 104 million shares to global investors.

Metrobank has also agreed to issue and sell an equal number of new primary shares at the same offer price to the selling shareholders.

As a result of the transaction, all proceeds from the placement would effectively be received by the bank while the selling shareholders’ equity interest in Metrobank would not change, Gamboa said.

Metrobank, the country’s second largest lender in terms of capital, reported a consolidated net income of P2.5 billion in the first quarter of 2010, up 31.7 percent, from P1.9 billion a year ago. It had total resources of P833.4 billion as of March, up 9.1 percent from a year ago.

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