The Market Monitor Minding the Nation's Business
By Riza Lozada
The Metropolitan Bank and Trust Co. (Metrobank), which is the country’s biggest lender, will exercise its option to redeem the entire capital security it floated in the international market worth $125 million on February 15 next year which is the First Optional Redemption Date.
In a report to the Philippines Stock Exchange (PSE), Metrobank included a copy of a letter dated December 22 advising The Bank of New York Mellon (Global Trust Services) that MBTC as issuer will exercise optional redemption of $125 million nine percent non-cumulative step-up callable perpetual capital securities.
The letter, signed by Metrobank President Fabian Dee, has advised The Bank of New York Mellon, the trustee, paying agent and registrar, for the redemption of the debt papers to comply with Bangko Sentral Ng Pilipinas (BSP) condition that\ noteholders on record will be notified at least 30 banking days prior to the redemption date.
In the same disclosure, Metrobank provided copy of letter from the BSP dated October 27, 2015 which stated the Monetary Board has approved the request of MBTC for the redemption of the debt notes. The BSP Monetary Board has set the condition that MBTC to shoulder any tax due to interest income already earned by the noteholders, notwithstanding any agreement contrary to this provision.
Also, the MTBC has to comply with the condition that the bank will notify in writing the BSP Central Point of Contact Department (CPCD) within ten banking days after the completion of redemption about the actual date of redemption and the new capital composition.
The notification of noteholders on the redemption condition has to be complied also as part of the conditions of the BSP for the approval of the process. Metrobank has been ranked the strongest bank in the Philippines by Balance Sheet Ranking 2015 given by the Asian Banker 500.
The bank has been ranked ninth overall in Asia, the Philippines bank first in the top 10 list.