BDO completes Php 60-B stocks right offer
By Joann Santiago
MANILA, Jan. 26 (PNA) -- Sy-led Banco de Oro Unibank Inc. (BDO) on Thursday announced the completion of its Php 60-billion (USD 1.2 billion) stock right offering, which closed Jan. 24.
In a statement, the bank said the transaction was so far the largest for a Philippine company.
The offer was oversubscribed from both the domestic and international investors, it said without elaborating.
Listing of some 716,402,886 shares at the Philippine Stock Exchange (PSE) is scheduled on Jan. 31, 2017 at an expected price of about Php 83.75 apiece.
Credit Suisse, UBS, and BDO Capital served as joint global coordinators and joined by Citigroup, Goldman Sachs, and HSBC as joint bookrunners. BDO Capital served as issue manager and domestic underwriter.
BDO said the latest exercise strengthened the bank’s Common Equity Tier (CET) 1 capital “and supports the bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects.â€
â€Additionally, this provides a comfortable buffer over higher capital requirements with the imposition of the Domestic Systemically Important Bank (DSIB) surcharge,†it said.
The Bangko Sentral ng Pilipinas (BSP), in July 2015, said it has identified DSIBs, which are described as "banks whose distress or disorderly failure would cause significant disruptions to the wider financial system and economy."
Because of their systemic importance these financial institutions are now required to maintain additional CET1 of between 150-250 basis points of their respective Risk-Weighted Assets starting 2017 and should be fully-compliant with the new capital requirement by 2019.(PNA)
RMA/JSV/EDS
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