Metropolitan Bank & Trust Co., the country’s second largest lender by assets, has launched an offering of peso-denominated sustainability bonds, seeking to raise at least P5 billion as the bank deepens its funding base while riding growing investor demand for environmental, social and governance (ESG) assets.
The lender owned by Ty Group began marketing its Series F ASEAN Sustainability Bonds on March 17, with the offer period scheduled to run until March 30. The notes carry a fixed interest rate of 5.4727 percent per year and a tenor of one and a half years.
Metrobank has set a base issue of P5 billion but retained an oversubscription option, a structure commonly used by issuers to take advantage of strong investor appetite if demand exceeds expectations.
The bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on April 14.
Proceeds will help support Metrobank’s lending activities while diversifying the bank’s funding sources beyond traditional deposits. Just as importantly, the issuance allows the lender to expand its pool of sustainable financing.
Under its Sustainable Finance Framework, Metrobank said the funds will be allocated to finance or refinance eligible green and social assets, including projects that generate measurable environmental or social benefits. The minimum investment is set at P500,000, with additional placements allowed in increments of P100,000.
First Metro Investment Corp., ING Bank N.V. Manila Branch and Standard Chartered Bank are acting as joint lead managers and bookrunners for the transaction. The three institutions will also serve as selling agents alongside Metrobank, while ING will act as sustainability coordinator.
The issuance forms part of Metrobank’s broader P200-billion bond and commercial paper program approved by its board in December 2021.
Sustainability bonds have become a strategic funding tool—raising capital while aligning balance sheets with the region’s accelerating push toward climate and social financing.
