Union Bank hikes authorized capital
MANILA, Philippines - Union Bank of the Philippines’ directors approved an increase in the company’s authorized capital from P6.7 billion to P23.1 billion.
The increase is divided into about 641 million common shares and 100 million preferred shares, each with a par value of P10 and P100, respectively. The board, likewise, approved the declaration of 65 percent stock dividends, amounting to about P4.2 billion, to be issued from the increase in authorized capital.
The preferred shares shall be non-voting, except as may be allowed by law, and have preferential right over common shares in dividend distribution. The other terms and conditions of the preferred shares shall be defined should the bank elects to issue the shares.
The increase in authorized capital will enable UnionBank to seize growth opportunities aligned with its strategy on leveraging capital, focused mainly on low-cost CASA deposits build-up and consumer-led loan expansion in support of the bank’s thrust in achieving a more balanced and sustainable revenue stream.
“The economy has been fast expanding in the last few years and the prospects of a sustained higher growth rate is expected. Big-ticket items are in the planning board and UnionBank wants to participate and seize the opportunities arise in this very favorable economic developments particularly in infrastructure financing. Also aligned with the fact that the forthcoming ASEAN Economic Integration will require larger banks to underwrite these financial and economic undertakings, which is part of the growth strategy of the Bank.†said Victor B. Valdepeñas, UnionBank President and Chief Operating Officer.
About the Bank:
UnionBank is a publicly-listed universal bank. The Bank distinguishes itself through superior technology, unique branch sales and service culture, and centralized backroom operations. Superior technology allows delivery of online, real time business solutions to meet the customers’ changing and diverse needs through innovative and customized cash management products and service offerings. Unique branch culture ensures efficient and quality service as well as mitigates operational risk. Centralization enables the Bank to provide responsive, scalable, and secure transaction processing.
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