The debt paper will be recognized as a lower Tier 2 capital which the bank will use to enhance its capital base ahead of the implementation of new international accounting standards and for the expansion of its branch network.
The Bangko Sentral ng Pilipinas (BSP) has approved the issuance of the unsecured subordinated debt as lower Tier 2 capital, which will have a minimum tenor of five years with an option to expand to 10 years.
Proceeds of the float will beef up the bank’s capital base, thus bringing its capital adequacy ratio (CAR) to beyond 20 percent from the current 17 percent, more than double the BSP’s 10-percent requirement.
The Manila branch of Deutsche Bank AG has been appointed as lead arranger and selling agent while Multinational Investment Bancorporation will act as the market maker as well as selling agent along with Unicapital Inc.
The Philippine Depository and Trust Corp. has been tapped as registrar while the Development Bank of the Philippines will be the public trustee.
A road show will be undertaken in the second week of March mainly for the domestic market. iBank executive vice president Antonio Moncupa said that the bank now has sufficient asset reach, it can be aggressive for expansion. "If there is opportunity for an acquisition, we will look into it."
Presently, iBank has 72 branches nationwide.