Metropolitan Bank and Trust Company has launched and priced an overnight top-up placement raising about P5 billion in primary capital to strengthen its position in the banking sector.

In a disclosure to the Philippine Stock Exchange, the bank said that the proceeds of the offer will serve to further enhance its Tier 1 capital ratio, anticipate Basel LLL regulatory requirements, and facilitate further loan growth.

As part of the top-up placement, certain Metrobank shareholders (the selling shareholders) have agreed to sell about 104 million shares to global investors (the placement).

Concurrent to the placement, Metrobank has agreed to issue and sell an equal number of new primary shares at the same offer price to the selling shareholders.

All proceeds from the placement will effectively be recieved by Metrobank, and the selling shareholders' equity interest in Metrobank will not change as a result of the transaction.

The banks said the placement was close to three times oversubscribed. UBS acted as sole bookrunner for the Placement, which is expected to close on May 6, 2010.