By Cris Larano
MANILA--Metropolitan Bank & Trust Co. (MBT.PH), the
Philippines' second-largest lender by assets, is planning an
international roadshow to stoke investor interest in its planned
issuance of Basel III compliant Tier 2 capital.
Metrobank, as the lender is better known, is awaiting central
bank approval for its planned $500 million Tier 2 capital
issuance.
The central bank will implement new Basel III rules that impose
stricter capital standards starting January 2014. The rules require
that any Tier 2 capital issue have a provision that allows banks to
write them off or convert them to common equity if certain events
are triggered, such as a bailout or nonviability of the bank.
Metrobank hired J.P. Morgan Securities PLC and UBS AG to arrange
the meetings with international investors. It said the timing of
the issuance of the U.S. dollar-denominated debt will depend on
market and other conditions.
The bank in March doubled its authorized capital to 100 billion
pesos (US$2.3 billion) to cover fresh capital-raising plans.
Write to Cris Larano at cris.larano@dowjones.com
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