Negros family boosts PBCom capital

MANILA, Philippines—Philippine Bank of Communications is getting a fresh equity infusion of P800 million from the Jalandoni group, a low-key Negrense family.

The Jalandoni group will buy new shares in the bank at P27.88 per share, the same price at which the group of former Trade Minister Roberto V. Ongpin acquired a controlling stake in the bank, according to a disclosure to the Philippine Stock Exchange on Wednesday.

The disclosure said PBCom’s board had approved the acceptance of deposit for future subscription from the Jalandoni group in the amount of P800 million. The family hails from the sugar-producing province of Negros Occidental.

“The amount will be used to subscribe to common shares of the bank as soon as the increase in authorized capital of the bank is approved by the regulators,” the disclosure said.

The subscription price per share will be an amount equivalent to P27.88 plus interest at 4 percent per annum reckoned from the start of 2012 to the date the actual deposit is made, the disclosure said.

Ongpin-led ISM Communications earlier took over a 97 percent stake in PBCom for P4.7 billion.

PBCom has a banking franchise with a 64-branch network and a niche middle-market Chinese clientele base. It is ranked 22nd-largest among the country’s 38 commercial banks in terms of resources, with assets of around P45.45 billion as of end-2011. It has a capital base of P6.78 billion, deposit base of P27.8 billion and a lending book of about P9.5 billion.

Ongpin, the local partner of British fund Ashmore, which has been investing heavily in the Philippines in the last few years, is also part of the group that holds the controlling stake in San Miguel Corp. His group also has interests in real estate development (Alphaland Corp.), mining and oil exploration (Atok-Big Wedge Co. Inc.), information technology and gaming (Philweb Corp.) and oil refinery (Petron Corp.).