By James A. Loyola
Metropolitan Bank & Trust Company has completed its P60-billion Stock Rights Offer with eligible shareholders subscribing to all of the available 799.84 million common shares which have been listed at the bourse.
In a disclosure to the Philippine Stock Exchange, the firm said broad support was seen across the shareholder base resulting in a substantial oversubscription.
The Bank said the success of the Offer represents a strong vote of confidence from investors in the Bank and its strategy.
Metrobank believes that the robust growth of the Philippines will continue to support loan expansion across the various segments of the economy.
It seeks to capitalize on the growth opportunities of large cap corporates and especially in its core franchise, the middle market and small to medium enterprises segments.
Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage.
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 preceding years.
To that end, the Bank intends to focus on enhancing customer experience through digitization initiatives and branch efficiencies and value propositions to target clients.
In addition, a portion of the Offer proceeds will be used for the acquisition of the 40 percent equity stake in Metrobank Card Corporation (MCC), the final tranche of which is set to be completed by the third quarter of 2018.
This is in order to recognize additional earnings from MCC and as part of the Bank’s capital planning initiatives and in line with the Bank’s goal to improve operational efficiencies.
The additional capital from the Offer is expected to further enhance the Bank’s capital ratios, keeping it well above the Philippine Basel III requirements.