The first agreement was between EIB and the stockholders and small depositors represented by the National Association of Urban Bank Inc. and Urbancorp Investments Inc. Depositors and Creditors (NAUD).
The small depositors agreed to convert 10 percent of their deposits into common shares with a cash equivalent of P1.256 billion.
In another agreement, Urban Bank’s three major depositors  Petron Corp., Manila Electric Co. and San Miguel Corp.  gave their consent for the conversion of P750 million, or 25 percent of their combined deposits amounting to P3 billion, into a long-term loan with an interest rate of 7.5 percent per year net of taxes.
The loan will be repaid over a six-year period: one-third on the fourth year, another percent on the fifth year and the balance on the sixth and final year, EIB chairman Sergio Ortiz-Luis said.
The Social Security System (SSS), another key player in EIB’s plan to acquire Urban Bank, submitted a letter of commitment covering both its role as investor and creditor. Aside from previous investments worth over P300 million already with Urban Bank, SSS stated that it is prepared to issue a P600-million long-term convertible loan to EIB.
For its part, EIB has committed to infuse P2.6 billion in fresh capital to back up its merger plan with Uban Bank. Add to this some P1.080 billion in retained earnings which will be added to the stockholders’ equity.
This means that the merged bank will have a capital base in excess of P5.5 billion, more than enough to qualify it for a commercial banking license.