Philippines banks mandate sub debt | FinanceAsia

Metrobank launches the Republic's first public subordinated debt issue as Equitable-PCI mandates a December deal.

UBS Warburg will lead manage both transactions, with Deutsche Bank joining it as joint bookrunner for Equitable-PCI, the Philippines' third largest bank by assets, which hopes to bring a transaction about a month after Metrobank, the country's largest.

The lower tier 2 transaction marks the Republic's first public subordinated debt transaction since the central bank formulated regulations at the end of last year and should provide an interesting addition to the country's credit spectrum. Early indications suggest it will price relatively aggressively to the sovereign curve, with investors reporting an indicative premium of about 100bp. more