Metropolitan Bank & Trust Co., the country’s 3rd largest lender by assets, has raised P35 billion from its largest peso-denominated bond issuance to date, underscoring strong investor appetite for sustainability-linked instruments despite evolving market conditions.
The bank listed its Series F ASEAN Sustainability Bonds on the Philippine Dealing & Exchange Corp., with the 1.5-year notes carrying a fixed interest rate of 5.4727 percent per annum. The issuance was heavily oversubscribed, attracting demand seven times the base offer of P5 billion, prompting an early close of the offer period on March 23, ahead of its original March 30 schedule.
The strong take-up from both institutional and retail investors reflects a growing shift toward investments that combine financial returns with environmental and social impact. It also signals confidence in Metrobank’s credit profile and its expanding role in sustainable finance.
Proceeds from the issuance will be used to diversify funding sources and support lending activities, with allocations guided by the bank’s Sustainable Finance Framework. Funds will be directed toward eligible green and social projects, including initiatives that promote environmental sustainability and inclusive growth.
Metrobank’s framework has been assigned an SQS2 or “Very Good” rating by Moody’s Ratings, indicating strong alignment with international sustainability standards and measurable impact targets.
Treasury head John Lu said the robust demand highlights increasing investor preference for instruments that deliver both returns and long-term value.
The transaction was arranged with support from First Metro Investment Corporation, ING Bank N.V. Manila Branch, and Standard Chartered Bank as joint lead managers and bookrunners, with ING also serving as sustainability coordinator.
The deal positions Metrobank to further scale its sustainable lending portfolio while reinforcing its funding flexibility.
More broadly, it highlights how Philippine banks are tapping capital markets not just for liquidity, but to align balance sheet growth with climate and social objectives.
