Union Bank sets int’l roadshow for rights offer

Union Bank of the Philippines will start on April 26 its international roadshow and stock rights offer covering a total of 90 million shares.

Union Bank said the stock rights and public offering will raise the necessary capital to make it comply with the international standards for banking institutions set by the Basel II framework.

In a report to the Philippine Stock Exchange (PSE), the Aboitiz-led universal bank said it hopes to raise P4.8 billion from the public offer.

"The bank intends to use the majority of the proceeds from the offer to strengthen its capital adequacy ratio (CAR) as per Basel II requirements and enhance its financial flexibility," the bank said in its report.

Union Bank also expects to use a portion of the proceeds for general corporate purposes, including working capital requirements.

ATR Kim Eng Capital Partners Inc. was tapped as the domestic issue manager and lead underwriter while Macquarie Securities (Asia) Pte Ltd. is the global coordinator, bookrunner and international lead manager. Also tapped for the offer was Sycip Gorres Velayo and Co. as independent public accountants.

A total of 85. 5 million common shares will be involved in the offering, 59 million shares of which will be offered to international investors and 14.7 million to domestic investors. Another 11.7 million, representing 15 percent of offer shares, are reserved for over-allotment.

The shares carry a par value of P10 each.

The balance of 4.5 million common shares will cover the bank’s 6.127:1 stock rights offering to all existing stockholders. Record date was set on April 27 to May 4 with listing date on May 10.