Union Bank gets BSP nod to triple capital

MANILA, Philippines – Union Bank of the Philippines has obtained approval from the Bangko Sentral ng Pilipinas (BSP) to triple its authorized capital to P23.1 billion in line with the bank’s goal to become one of the country’s top three banks by 2020.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Union Bank said it had received an advisory from the BSP approving the expansion in authorized capital, which currently stands at P6.7 billion.

As the capital hike involves an amendment to the bank’s articles of incorporation, Union Bank is also seeking approval from the Securities and Exchange Commission (SEC) to carry out this capital increase.

At the proposed P23.1 billion authorized capital, the bank will have 1.311 billion common shares at par value of P10 each and 100 million preferred shares at par value of P100 each.

The mandate from the BSP also provides that the 65 percent stock dividends earlier approved be used to fund the 25 percent subscription to the increase of capital.

Fractional shares resulting from the stock dividend declaration shall be paid in cash at P120 per share, the disclosure added.

Record and payment dates for the stock dividend will be set upon receipt of the SEC approval of the amended articles of incorporation and stock dividends and the PSE approval-in-principle of the listing of stock dividend with the local bourse.