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Metropolitan Bank
and Trust Company -
New York
10 East 53rd Street,
New York, NY 10022
Telephone:
(212) 832-0855
(212) 832-0951
Facsimile:
(212) 832-0993
(212) 223-0916
Toll Free:
(800) 863-8762
(Outside NY, NJ & CT)
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Metrobank signs major deals to fund business expansion
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Even with the reported weak loan growth in the financial services industry during the first half of the year, Metrobank, the country’s largest lender remains at the forefront of lending activities to large corporate accounts in line with its new growth strategy to strengthen its corporate loans portfolio.
Already this year, Metrobank has signed a facility agreement for the issuance of P3 billion worth of SM Prime Holdings, Inc. (SM Prime) Floating Rate Notes (FRN), and extended a P3 billion loan to Globe Telecom (Globe) as well as a P5 billion loan to Smart Communications (Smart).
The SM Prime P3 billion FRN was funded solely by Metrobank with First Metro Investment Corporation acting as the Arranger. It was the largest fund raising of its nature in the Philippine debt market in years. “This is the first complete, major underwriting by the Metrobank Group for the SM Group,” said SM Prime president Hans T. Sy. SM Prime is the country’s leading shopping mall developer and operator, and is part of the SM Group, one of the Philippines’ largest conglomerates operating in retail merchandising, shopping and entertainment malls, financial services, real estate, and tourism.
The Bank also extended a P3 billion five-year term loan facility to finance Globe’s capital expenditures and regular working capital requirements. Loan proceeds are to be used for the roll out of infrastructure for its third-generation (3G) network, as well as for the broadband infrastructure of its wireline business. “In this business, you never see the end of expansion,” Gerardo C. Ablaza Jr., Globe president and CEO said. “Metrobank understands our needs and they are able to provide us financing under competitive terms. That is what makes this partnership noteworthy.”
Wireless service provider Smart Communications has also secured from Metrobank a P5 billion, five year multi-currency term loan that will partially finance its capital expenditure requirements. “The strength of our partnership with Metrobank has proven itself over the years. Indeed, the list of Metrobank’s businesses with Smart is growing. The bank supports us with cash management services, trustee services for various Smart accounts, and participation in the 2014 Smart debt,” Smart president and CEO Napoleon L. Nazareno said. Smart reported that the loan will be used to support its network upgrade and expansion.
Metrobank has been a crucial partner in building up the telecoms companies’ capacity to address customer needs via network development and expansion for several years. Expansion of cellular network and mobile technology allows customers access to improved services such as third-generation (3G) technology, wireless broadband and other upgrades.
The recent large loan agreements are a testament to the Metrobank Group’s capabilities as the country’s leading financial institution, as well as its commitment to support business expansion and economic growth in the Philippines.
Metrobank remains the industry’s largest lender with P277.9 billion in consolidated net loans and receivables as of June 30, 2006.
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