Metrobank to sell P10-B tier 2 notes


Posted at Jun 19 2008 12:35 PM | Updated as of Jun 19 2008 08:35 PM

Metropolitan Bank and Trust Co. (Metrobank), the country's biggest lender, said Thursday its board has approved the issuance of P10 billion worth of unsecured subordinated debt or tier 2 capital.

In a disclosure to the stock exchange, the bank said the notes will be issued in one or more tranches. The terms and conditions of the offer will be subject to the central bank's approval.

Metrobank's board also approved the sale of a 10-percent stake in Orix Metro Leasing & Finance Corp. to its investment banking arm, First Metro Investment Corp. The sale consists of 610,995 common shares in Orix Metro priced at P176.44 per share or a total of P107.8 million.

"The sale will reduce Metrobank's holdings [in Orix Metro] from 50 percent to 40 percent," it said.

The bank also declared a 3.0-percent cash dividend amounting to P1.08 billion to  shareholders. Record and payment dates have yet to be announced.