Metropolitan Bank & Trust Co. successfully concluded its offering of a dual tranche, 5 year and 10 year U.S. dollar denominated notes midst overwhelming demand. The 5-year and 10-year bonds were priced at 110 basis points and 130 basis points above the benchmark U.S. Treasury notes, carrying fixed coupon rates of 5.375% and 5.50%, respectively.

The final order book was more than 11 times oversubscribed, reaching USD 5.6 billion from investors globally. Metrobank is the first private bank to issue a long-dated 10-year bond. Moody's gave the 5- and 10-year bonds an investment grade rating of Baa2, at par with the Republic of the Philippines sovereign dollar debt.

This issuance established several records: the longest senior dated note by a private sector bank in the Philippines, the largest non-sovereign note issuance of USD1 billion, and the tightest ever credit spreads on the 5-year tranche among non-sovereign Philippine issuers. By geographical allocation, 86% of the investors came from Asia Pacific (APAC) and 14% from Europe, Middle East and Africa (EMEA). By investor type, meanwhile, 73% was allocated to fund managers, 14% to banks/financial institutions and the remaining 13% to insurers, corporations and private banks.

Proceeds of the bond issuance will be used to diversify the bank's funding sources and establish a benchmark for Philippine bank credit in the international capital markets. Bank of America Securities and UBS were the Joint Global Coordinators and Joint Bookrunners for the transaction, MUFG Securities and First Metro Investment Corp. acted as Joint Bookrunners.