With the need to boost capital amid cutthroat competition in the banking space, Philippine Veterans Bank (PVB) went to Congress during the pandemic to overhaul its 50-year-old charter.
The bank’s new charter now allows the expansion of its capital base to P10 billion and also updates the definition of what a “veteran” is. Now included in its definition are not just the World War II veterans recognized by the Philippine and United States (who are getting fewer by the day) but any person who had legitimately served in the country’s air, land or naval services. The widows, orphans and compulsory heirs of deceased veterans are likewise included.
Led by chair and CEO Roberto de Ocampo, the recapitalization of PVB is now in motion. A P4.4-billion capital call has been issued with an offer of 40 million shares priced at P110 per share to all WWII veterans, Armed Forces of the Philippines retirees, as well as their immediate family members and descendants. They are invited to “invest in heroism; invest in PVB” until Nov. 30 this year.
A buy-in deal has likewise been signed with RYM Business Management Corp. of House Speaker Martin Romualdez, bringing in new capital initially amounting to P1.8 billion, which in turn boosted PVB’s equity to slightly more than P5 billion. RYM, itself described as an entity with sons and daughters of WWII veterans as members, acquired around 40 percent of the bank.
“We’re happy [Romualdez] is in but we’ll both have to work with the remaining [capital needed] because we expanded the base to include all veterans,” De Ocampo told Biz Buzz.
De Ocampo, who was Finance Secretary during the term of the late President Ramos, is hoping to complete the capital hike by next year. He added that the fresh capital brought in by RYM was a “big boost” and would give the bank more flexibility in its lending operations.
Asked whether RYM would raise its stake beyond 40 percent, De Ocampo said the ongoing capital call would first prioritize the expanded veteran base. Whatever is not taken up by the veteran segment will be up for grabs later on.
De Ocampo has told stockholders that with the expansion in capital, the private commercial bank—the only one whose charter is legislated—would “grow by leaps and bounds” and be capable to the beacon of financial stability to the veteran community.
“From then on, we will never be looked upon anymore as a minor bank or a saling pusa or a bank that can’t meet the needs of supporting the veteran community,” he said. —Doris Dumlao-Abadilla