MANILA–The Philippine Stock Exchange has approved capital-raising activities of two big banks through stock rights offering early next year: P25 billion for Bank of the Philippine Islands and P15 billion for Philippine National Bank.
In an offering circular posted by the PSE on Wednesday, Ayala-led BPI was given clearance to offer up to 395 million common shares to existing stockholders. Offering will run from January 20 to 30 while listing is tentatively set for Feb. 10 next year.
PNB, for its part, is selling up to 163 million common shares from January 27 to Feb. 3 while listing will be on Feb. 11 next year.
Both banks are beefing up their core or tier 1 equity with the implementation of Basel 3 capital adequacy ratio framework, which introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extends the coverage of financial risks and requires stronger firewalls against periods of stress.