Banco de Oro Unibank Inc. (BDO) is planning to boost its capital by up to P13 billion through a combination of a share offering and the issuance of Tier 2 notes, the bank said on Monday.
In a statement, BDO said its board has approved the fund raising activities to “boost BDO’s capital position and prepare the bank for further expansion and potential acquisition opportunities.”
“We have already digested the problems resulting from the 2008 financial crisis, and they are now behind us. We are looking forward to opportunities that may arise this year,” said BDO chairperson Teresita Sy-Coson.
The share offer would be in the form of a rights offering for existing shareholders while the notes issue would represent “the balance from its capital program in 2008.”
BDO said the twin initiatives are expected to improve its capital adequacy ratio to approximately 16 percent.
Both capital-raising exercises are set to be completed within the first semester this year.
Sy earlier said they will continue to bid for the Philippine assets of US insurance giant AIG with their strategic partner Generali Asia.
“It is a long process but our partners (Generali) continue to pursue it,” she said.
BDO owns 40 percent of life and non-life insurance firm Generali Pilipinas which, in turn, is controlled by Generali Asia, a regional alliance between global player Assicurazioni Generali of Italy and Jerneh Asia Berhad of Malaysia.
During the first nine months of last year, BDO registered a 78 percent decline in its net income to P1.06 billion, principally due to losses from its exposure to failed US investment giant Lehman Brothers.