More Philippine banks tap bond markets

More local banks on Monday announced plans to access the bond markets to support their respective maturing liabilities.

In a regulatory filing, the Metropolitan Bank & Trust Co. announced plans to issue 5.5-year dollar-denominated senior unsecured notes. It did not elaborate.

"Proceeds will be used to finance existing indebtedness," Metrobank said.  

It has already tapped UBS and First Metro Investment Corp. as the joint global coordinators and bookrunners, while MUFG and SMBC Nikko Capital Markets Limited will serve as joint lead managers.

In a separate filing, the Rizal Commercial Bank Corp. (RCBC) said it will again access the local bond market with the issuance of two-year fixed-rate peso bonds.

The bonds form part of the bank's P100-billion bond and commercial paper program established on March 17, and will be the fifth tranche under the program.

Scheduled to start on Monday, July 6 until July 17, 2020, the offer will have a minimum issue size of P3 billion, with an option to upsize under certain market and other conditions. They will be offered at a fixed interest rate of 3.25% per annum.

"The funds raised from the bonds will be utilized to support asset growth, re-finance maturing liabilities, and other general funding purposes," said RCBC.

ING Bank N.V Manila Branch has been tapped as the sole lead arranger and bookrunner for the issuance, with RCBC Capital Corp. as the financial advisor. Both ING and RCBC are also selling agents.

To recall, other local lenders such as Security Bank Corp. and BDO Unibank Inc. just last month accessed the bond market. —Jon Viktor Cabuenas/KG, GMA News