Metropolitan Bank & Trust Co. (Metrobank) has successfully listed a landmark P35 billion sustainability bond on the Philippine Dealing & Exchange Corp. (PDEx), marking the bank's largest peso-denominated bond issuance to date.
This Series F offering, which carries a one-and-a-half-year tenor and an annual interest rate of 5.4727%, attracted unprecedented demand from both institutional and retail investors. Orders surged to seven times the initial base offer of P5 billion, prompting Metrobank to close the public offer period early on March 23, well ahead of the original March 30 deadline.
John Lu, head of Metrobank's treasury group, highlighted the significance of the response:
"We are encouraged by the strong response to this issuance, which reflects the trust our clients and partners continue to place in Metrobank. It also highlights the growing demand for investments that deliver not only financial returns, but also meaningful and lasting impact."
Proceeds from the bond sale will be used to diversify Metrobank's funding sources and support lending activities. In alignment with the bank's Sustainable Finance Framework (SFF), the funds will be allocated to finance or refinance eligible green and social assets, including projects focused on environmental sustainability and inclusive growth.
Moody's Ratings has assigned the SFF a sustainability quality score of "very good," indicating strong alignment with global standards and measurable environmental and social objectives.
The transaction was managed by First Metro Investment Corp., ING Bank N.V. Manila Branch, and Standard Chartered Bank, which served as joint lead managers, joint bookrunners, and selling agents. ING also acted as sustainability coordinator for the issuance.