BPI: Fresh P50B from stocks rights offer to boost loan book

Ayala Corp.’s Bank of the Philippine Islands (BPI) yesterday listed new shares under a recently-concluded P50-billion rights offering.

The money was raised to further strengthen BPI’s balance sheet as it sought to expand its business.

One area for expansion was its retail loan portfolio, currently accounting for about 20 percent, BPI president and CEO Cezar P. Consing said on Friday. The bulk still goes to the corporate segment.

While BPI was a major player here, Consing said there was further room to grow. He cited areas such as auto, housing and personal loans, that could bring the retail loan portfolio to about 30 percent.

Money from its rights offer will allow BPI to invest more in streamlining its platform while simplifying the process for handling  retail loans.

On Friday, BPI listed 558.66 million shares, valued at P89.50 apiece, or a total of P50 billion.

The new shares were issued to shareholders on record, at a ratio of one new common share for every seven shares held. The total amount was equivalent to 14.2 percent of BPI’s outstanding common shares.

BPI Capital Corp. was the sole global coordinator and lead manager, sole domestic manager, and domestic bookrunner and underwriter. Deutsche Bank AG, Hong Kong Branch, Goldman Sachs (Singapore) Pte. and J.P. Morgan Securities plc were joint international bookrunners and underwriters.