Metrobank seeks to raise $0.5 billion in USD debt offering

Metrobank has selected Bank of America Securities and UBS as joint global coordinators to run a process to sell up to $500 million in dollar-denominated senior unsecured notes, with an option to upsize. This offering is part of Metrobank’s $2 billion program established in 2017 to finance the expansion of its loan portfolio and diversify its funding sources.

Both bonds and notes are types of debt with different risk/return profiles, maturity dates, and utility for the issuer. Notes are typically used by companies to raise money quickly, with a shorter maturity and higher interest rates, especially if they are unsecured. Bonds, on the other hand, are used for raising larger amounts of money for long-term projects, with longer maturity dates and lower interest rates.

Selling US Dollar-denominated notes could be a strategy for Metrobank to spread its currency risk. By diversifying its debt portfolio with different currencies, the bank can protect itself from potential fluctuations in the peso exchange rate. This move may help mitigate risks and ensure a more stable financial position for the bank.

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