MANILA—Two of the country’s largest banks are all set to brave the capital market through stock rights offerings later this month, with Bank of the Philippine Islands selling P25 billion and Philippine National Bank selling P11.6 billion in fresh equity.
BPI priced on Friday its stock rights offering at P67.50 per share. Shareholders will get one new share for every 9.602 existing common shares held, the bank disclosed to the Philippine Stock Exchange on Friday. Its offering, consisting of 370.37 million shares, will run from January 20 to 30.
PNB is set to begin its offering of shares to existing shareholders soon after BPI’s equity launch. In a separate disclosure on Friday, the bank said it had priced its stock rights offering at P71 per share at an entitlement ratio of 15 news shares for every 100 old shares held. Its offering will begin on Jan. 27 and end on Feb. 3.
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.
Acting as joint bookrunners and underwriters for BPI’s stock rights offering are BPI Capital Corp., Goldman Sachs (Singapore) Pte., and JP Morgan Ltd. The sole global coordinator and lead manager is BPI Capital.
For PNB’s offering, the sole domestic underwriter is PNB Capital and Investment Corp. while the joint international lead managers and international underwriters are Credit Suisse (Singapore) ltd. and Deutsche Bank AG Hong Kong.