INQUIRER file photo
The Philippine Stock Exchange has approved a plan by Ayala-led Bank of the Philippine Islands (BPI) to beef up capital by as much as P50 billion by selling new shares to existing investors.
Based on an offering circular posted by PSE on Thursday, BPI was authorized to sell up to 600 million in new shares to eligible shareholders.
The offering will be priced on March 27. The entitlement ratio has yet to be finalized.
BPI’s share sale will run from April 16 to 25 while listing on the PSE is tentatively scheduled for May 4.
Shareholders as of record date April 6 will be eligible to subscribe to the stock rights offering. Ex-date is on April 3.
Proceeds from the offering will be used by BPI to “enhance its capital position to further expand its presence in emerging growth areas particularly funding loan growth in the consumer, SMEs (small and medium enterprises) and microfinance segments, while achieving a buffer over higher loss absorbency requirements under Basel 3 rules as well as funding infrastructure expansion.”
Basel 3 introduces a complex package of reforms designed to improve the ability of bank capital to absorb losses. It also extends the coverage of financial risks and puts in place stronger firewalls against periods of stress.
BPI Capital Corp. is mandated as the sole global coordinator and lead manager, sole domestic manager, domestic bookrunner and underwriter for this offering.
The joint international bookrunners and underwriters are Deutsche Bank AG (Hong Kong Branch), Goldman Sachs (Singapore) Pte. and J.P. Morgan Securities plc.
Ayala Corp., BPI’s parent conglomerate, has committed to support the rights offer.