Metropolitan Bank & Trust Co., commonly known as Metrobank, has just completed its largest-ever peso bond offering by raising PHP35 billion through ASEAN Sustainability Bonds, according to a press release dated April 14, 2026.

What Are Bonds and Why Did Metrobank Issue Them?

Think of bonds like IOUs or promissory notes. When a bank like Metrobank issues bonds, they’re essentially borrowing money from investors and promising to pay them back later with interest. It’s similar to when you borrow money from a friend and promise to pay them back with a little extra as a thank you.

In this case, Metrobank issued what are called “ASEAN Sustainability Bonds.” These are special because the money raised will be used specifically for projects that help the environment (green projects) and help communities (social projects).

The Bond Details Made Simple

The Series F bonds that Metrobank issued have a tenor (or duration) of 1.5 years, meaning investors will get their money back in about 18 months. During this time, Metrobank will pay them an interest rate of 5.4727% per year – that’s the “rent” Metrobank pays for using the investors’ money.

Overwhelming Investor Demand

The offering was extremely popular. Metrobank originally planned to raise only PHP5 billion (called the “base offer size”), but investor demand was so strong that orders came in at 7 times that amount. This meant investors wanted to buy PHP35 billion worth of bonds – seven times more than initially planned!

The public offer period was supposed to run from March 17 to March 30, 2026, but because so many people wanted to buy the bonds, Metrobank closed the offer early on March 23, 2026 – a full week ahead of schedule.

How Will Metrobank Use the Money?

According to the press release, the PHP35 billion raised will be used for two main purposes:

• To diversify (or vary) where Metrobank gets its funding from
• To support the bank’s lending activities, specifically for projects that align with environmental sustainability and inclusive growth

These funds will finance or refinance what Metrobank calls “eligible green and social assets” – basically loans for projects that are good for the environment and help communities.

Recognition for Sustainability Efforts

Metrobank’s Sustainable Finance Framework (SFF) received an SQS2 rating with a “Very Good” Sustainability Quality Score from Moody’s Ratings. This is like getting a good grade on a report card – it shows that Metrobank’s plan for using this money aligns well with recognized sustainability principles and has clear environmental and social goals.

John Lu, Head of Metrobank’s Treasury Group, commented on the successful issuance: “We are encouraged by the strong response to this issuance, which reflects the trust our clients and partners continue to place in Metrobank. It also highlights the growing demand for investments that deliver not only financial returns, but also meaningful and lasting impact.”

Who Helped with the Bond Issuance?

Several financial institutions worked together to make this bond offering happen. First Metro Investment Corporation, ING Bank N.V. Manila Branch, and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners (these are the teams that organize and manage the bond sale). They also served as Selling Agents alongside Metrobank, with ING specifically taking on the role of Sustainability Coordinator.

About Metrobank

For context, Metrobank is the Philippines’ second-largest universal bank. According to the press release, the bank operates an extensive network of over 960 domestic branches across the country, more than 2,200 ATMs, and 28 foreign branches, subsidiaries, and representative offices.

As of end-2025, Metrobank reported consolidated assets of PHP3.88 trillion. The bank maintains strong capital ratios with a total Capital Adequacy Ratio (CAR) of 16.8% and Common Equity Tier 1 (CET1) ratio of 16.1% – these are important measures that show how financially healthy and stable a bank is.

Metrobank holds investment-grade ratings of Baa2 from Moody’s and BBB- from Fitch Ratings, which are ratings agencies that evaluate how likely a company is to pay back its debts.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.