<article>Metropolitan Bank &amp; Trust Company (<a href="https://www.metrobank.com.ph/" target="_blank">Metrobank</a>), a financial conglomerate in the Philippines, is seeking to raise its financial strength by up to $721 million (P32 billion) via stocks right offer (SRO), meant to support its company growth</article>

Metropolitan Bank &amp; Trust Company (<a href="https://www.metrobank.com.ph/" target="_blank">Metrobank</a>), a financial conglomerate in the Philippines, is seeking to raise its financial strength by up to $721 million (P32 billion) via stocks right offer (SRO), meant to support its company growth
Metrobank informed the Philippine Stock Exchange on Thursday that it received a board of approval to conduct such SRO.
To support this capital expansion, the bank cited sustainable attractive growth opportunities in the local banking sector, brought about by the continued strengthening of the Philippine economy, a growing middle class, and low credit penetration.
&#8220;Metrobank sees the opportunities not only on the large cap business segment, but especially in its core franchise, the middle-market and small to medium enterprise segments, as well as in the growing consumer space,&#8221; the bank said in a statement.
Aside from pursuing such business prospects and supporting its accelerating growth momentum, Metrobank also aims to use its expanded capital base for capacity building by increasing its sales coverage and distribution network. &#8220;The additional capital is expected to further enhance the bank&#8217;s capital ratios, keeping it well above the Philippine Base III requirements,&#8221; Metrobank added.
Metrobank has mandated JP Morgan and UBS as joint global coordinators, joint international lead managers, and joint book runners while First Metro Investment Corp or FMIC is acting as sole domestic lead manager and joint bookrunner. HSBC is acting as co-manager.
Timing of the transaction is subject to receipt of regulatory approvals as well as market and other considerations. The bank noted there will be no public offering of the rights offer shares in the United States.
As of September 30, 2014, Metrobank&#8217;s total asset base expanded by 20 per cent to $33.8 billion (P1.5 trillion). Loan growth was &#8220;better-than-expected&#8221; at 21 per cent or $15.7 billion (P697 billion) on the back of a 23 per cent growth in deposits to $24.7 billion (P1.1 trillion.
In the same period, Metrobank had a total capital adequacy ratio of 16.2 per cent and common equity tier 1 of 12.1 per cent. &#8220;Both ratios are well above the BSP requirement of 10 per cent and 8.5 per cent, respectively,&#8221; the bank said.
Metrobank&#8217;s share price was at P90 apiece on Thursday, down by P2.65 (2.86 per cent) from Wednesday&#8217;s P92.65 per share.

Metrobank to increase capital by $721m

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Metrobank to increase capital by $721m

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