BPI plans P50-B stock rights offer

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is planning to raise P50 billion through a stock rights offering (SRO) to fund the bank's medium term growth initiatives.

In a statement, BPI said it has approved a SRO of common shares to eligible shareholders to raise P50 billion as it leverages on the country and the banking sector's growth prospects in the coming years.

"Our planned stock rights offer is a vote of confidence in our country, our clients, and ourselves. The economic landscape will continue to change for the better in the next five years. We want to contri-bute to and benefit from that change," BPI president and chief executive officer Cezar Consing said.

With the planned SRO, BPI said it would endeavor to expand and strengthen its market-leading businesses and core franchises through the acceleration of lending activities across the consumer, small and medium enterprises, and micro-finance segments.

The bank said it would continue to invest in its delivery infrastructure to improve both efficiency and client coverage through digitization and electronic channels, and additional BPI Direct BanKo, BPI Family Bank and parent bank branches.

The BPI said its management would determine the final terms and conditions of the SRO, including the final issue size, entitlement ratio, offer price, record date appointment of the parties, and other terms.

It said it expected the fund raising activity to be launched after receiving the required regulatory approvals.

Ayala Corp., BPI’s major shareholder, has indicated its support of the rights offer.

 As of end-September 2017, BPI reported a net income of P17.05 billion, P330 million lower than the P17.38 billion posted in the same period last year.