Metrobank prices $723-M rights offer at discount

MANILA - Metropolitan Bank & Trust Co (Metrobank) priced on Tuesday its rights issue at P73.50 ($2) per share, a discount of about 21 percent to the stock's average price since the start of the year.

The Philippines' second-largest lender in terms of assets could raise as much as P32 billion ($723 million) from the share offer running from March 23 to March 27, the country's largest equity offering in two years.

The bank is offering one rights share for every 6.3045 common shares held as of March 18, it said in a filing to Manila stock exchange.

Shares of Metrobank rose as much as 0.7 percent to hit P94.50 in a largely flat market.

Analysts said the discount was aimed at attracting as many subscribers as possible. "I think it's more of an incentive for the shareholders to exercise their right," said April Lee Tan, research head at COL Financial in Manila.

The bank is seeking to raise Tier 1 capital to comply with Basel III standards, keeping pace with loan growth while bracing for stiffer competition after the Philippines enacted a law allowing foreign banks to take full control of domestic lenders.

JPMorgan and UBS AG are joint global coordinators, joint international lead managers and joint book runners for the issue. The Philippines' First Metro Investment Corp is the sole domestic lead manager and HSBC is the transaction's co-manager.

source: www.abs-cbnnews.com

Pepsi secures P1-B loan from Metrobank

MANILA, Philippines - Pepsi-Cola Products Philippines is borrowing P1-billion from Metrobank to fund its expansion plans this year.

In a disclosure, Pepsi chief financial officer Imran Moid says the loan will increase its manufacturing capacity to support its growth momentum.

Pepsi plans to increase its capital expenditure by 15% this year.

The company recently announced its entry into the powdered juice drinks category via its flagship brand Mirinda. - ANC Business Nightly

source: abs-cbnnews.com

Banks step up efforts to secure ATMs vs scammers

MANILA, Philippines - BDO Unibank and Metropolitan Bank and Trust Co (Metrobank) are stepping up efforts to protect its customers and secure its automated teller machines (ATM), after an international syndicate has reportedly been withdrawing money from ATM accounts of bank customers using card skimming devices.

In a statement, BDO said they have been working with the authorities to protect its clients and the public. The Henry Sy-led bank emphasized the fraud-related problems are an industry-wide problem and not just limited to BDO and its systems.

"We have taken steps as early as 3rd quarter of 2012 to secure our ATMs from such fraud attempts, such as installation of pin pad shields, use of enhanced card bezels, and daily inspections. Notwithstanding the above mentioned, we are taking extra measures that will allow us to detect and prevent fraudulent transactions as they occur like the constant security monitoring on transactions coming from identified high-risk countries," BDO said.

Metrobank said it has been taking steps as early as 2011 to make its ATMs more resistant to fraud.

"These include measures to prevent fraud perpetrators from copying the card information and capturing the PIN (Personal Information Number) sequence," Mark Perez, Head of the Retail Banking Group of Metrobank, saidin a statement.

BDO and Metrobank urged their customers to take the necessary precautions when using ATMs.

"But to be fully effective against this global modus operandi, we cannot over-emphasize the importance of customer vigilance, especially in protecting their PINs," Perez said.

BDO said customers should take the following precautionary actions:

    Transactors at any ATM should make it a habit to cover their hand when entering their ATM PIN.
    Regular habit of changing the PIN
    Avoiding the use of ATMs in high-risk areas

BDO said ATM account holders should contact its branches if any to contact our branches should they notice some irregularities so that we can act on resolving these quickly to minimize inconvenience.

source: abs-cbnnews.com