PBB sets P1.75-B rights offer in bid for universal license
Business tycoon Alfredo Yao’s thrift banking arm, Philippine Business Bank (PBB), is preparing to roll out a P1.75-billion stock rights offer amid plans to apply for a universal license.
PBB said a total of 175 million shares priced at P10 each would be offered to existing investors. This would enlarge its outstanding capital by over 27 percent.
Shares of PBB rose 0.44 percent to P6.81 each at the end of trading last Friday.
“The proceeds from the offer will be used primarily to increase PBB’s capital to comply with minimum capital requirement for a universal bank license and for other general corporate purposes including but not limited to investments, loans, maintenance capex, operating expenses and other opportunities,” PBB said in a stock exchange filing.
PBB said shareholders could avail of 1 rights share for every 3.68 shares owned. There were no details on the timing of the offer.
PBB said a larger capital base allows it to “expand the bank’s capability to develop more businesses and harness opportunities in the financial services space.”
The lender’s stockholders earlier approved to increase its authorized capital to P15 billion from P10 billion.
“The increase will also enable PBB to meet the growing demands of the banking business and positions the bank to exploit opportunities as the economy rebounds,” it added.
From January to June, PBB said net income rose 18.4 percent to P620.3 million. Net interest income reached P2.5 billion as loans and receivables grew 10.6 percent to P97.2 billion during the period.
“For the rest of the year, PBB’s positive results should continue to benefit its bottom line. The bank’s focus on serving the [small and medium enterprise] market while sustaining a healthy expansion of risk assets continues,” PBB vice chair, president and CEO Roland Avante said in a statement. INQ
