Metrobank is embarking on a significant financial undertaking, aiming to secure at least P5 billion through the issuance of short-term sustainability bonds focused on the ASEAN region. This move signals a strategic shift towards diversifying funding sources and bolstering its capacity to provide loans.
Investors will have the opportunity to participate in Series F ASEAN sustainability bonds, offering a fixed annual return of 5.4727% over a 1.5-year term. The offering is designed to attract a broad range of investors, with a minimum investment threshold of P500,000, and subsequent investments in increments of P100,000.
The funds generated from this bond sale are earmarked for a crucial purpose: financing and refinancing projects that deliver tangible environmental and social benefits. These initiatives fall under the bank’s established Sustainable Finance Framework, demonstrating a commitment to responsible lending practices.
This bond issuance isn’t simply about raising capital; it’s about strengthening the bank’s financial foundation while simultaneously supporting initiatives that contribute to a more sustainable future. Diversifying funding sources is a key element of Metrobank’s overall financial strategy.
The offer period is currently open and scheduled to conclude on March 30th, though this date is subject to potential adjustments based on market conditions. The bonds are slated for official issuance and listing on the Philippine Dealing & Exchange Corp. on April 14th.
This offering draws from a previously approved P200-billion bond and commercial paper program, established in December 2021, providing a flexible framework for future fundraising activities. It represents a continuation of the bank’s proactive approach to capital management.
First Metro Investment Corp., ING Bank N.V. Manila Branch, and Standard Chartered Bank have been appointed as joint lead managers and bookrunners for this bond offering, leveraging their expertise to ensure a successful launch. These institutions will also act as selling agents, with ING taking on the additional role of sustainability coordinator.
Metrobank’s previous domestic bond issuance in October 2022 proved remarkably successful, exceeding initial expectations and raising P23.7 billion. Strong investor demand led to an early closure of the offer period, highlighting the bank’s strong market position.
The proceeds from the 2022 bond sale were primarily allocated to general capital requirements, including the refinancing of existing obligations, demonstrating prudent financial management. This latest issuance builds upon that momentum.
Metrobank recently announced a record net income of P49.7 billion for 2025, a testament to its robust performance driven by consistent loan growth and substantial trading gains. This financial strength underpins its ability to undertake initiatives like the current bond offering.
Despite the bond offering, the bank’s shares experienced a slight dip on Tuesday, closing at P66.30 apiece, a decrease of 1.12% or 75 centavos from the previous day’s trading. This minor fluctuation doesn’t diminish the overall positive outlook for the institution.
