FMIC’s debut access to the general capital markets has planned tenor of 5 years.
First Metro Investment Corp., the investment banking unit of the Metrobank group, plans to debut in the local bond market by October with an offering of as much as P7 billion ($161.44 million) worth of retail bonds.
FMIC has obtained approval from its board to float the bonds, the company told the Philippine Stock Exchange Friday.
“This is the first time we’ll access the general capital markets,” FMIC president Roberto Juanchito Dispo said in an interview.
The offering was being planned by October after the Bureau of the Treasury’s issuance of a new tranche of retail treasury bonds, Dispo said, adding that the planned tenor was five years.
“Intrinsically, liquidity is trapped in the local capital market, so this is a great opportunity for us to provide alternative investment outlets. This is also a liability management exercise to lengthen our deposit base tenor, so we’re hitting two objectives,” Dispo said.
FMIC has issued a request for proposal to foreign banks that could be the potential underwriters. Dispo said the company would announce the mandate by next week.
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