The board of directors of Aboitiz-led Union Bank of the Philippines (UnionBank) has approved an increase in authorized capital stock as banks gear up for growth this year.loan
In a disclosure on Monday, the listed bank said it was increasing capitalization from P35.31 billion to P60.31 billion.
The capital stock is divided into 5 billion common shares with a par value of P10 each and 100 million preferred shares at P100 each.
“The increase in the authorized capital stock will be used to support growth and for general corporate purposes,” the bank said.
Regina Capital Development Corp. head of sales Luis Limlingan told the Inquirer the bank’s recent move was seen to provide “some legroom in potential fundraising activities, which can be used in the betterment of its future operations.”
The Aboitiz-led bank also announced on Monday the approval of P6.36 billion worth of stock dividends.
UnionBank recently concluded a P12-billion stock rights offering, proceeds of which were allocated to boost its loan portfolio and digital bank operations.
It involved the sale of 210.97 million shares at P56.88 each. The proceeds will be fully deployed by the first half of this year.
The listed company recently inked a partnership with AB Capital & Investment Corp. to launch programs for micro, small and medium enterprises (MSMEs) promoting financial literacy on financial markets.
The companies seek to provide MSMEs access to resources about initial public offerings and other related topics in a bid to help them grow their businesses.
“The capital markets, after all, should not be the exclusive domain of large corporations. They should be open to all entrepreneurs who meet the criteria of the investing public and regulatory authorities,” AB Capital executive chair Antonio Jose Periquet Jr. said in a statement on Monday.