PBB completes P1.25 billion capital hike

MANILA, Philippines — Shareholders of Yao-led Philippine Business Bank (PBB) completed the subscription to P1.25 billion worth of shares to cover the increase in its authorized capital stock.

In a disclosure to the local bourse, the country’s second largest thrift bank said its principal shareholders completed their subscription payment to the private placement amounting to P1.25 billion.

This is equivalent to 125 million common shares at P10 apiece.

This is also pursuant to the approval of the board of directors to increase the bank’s capital stock.

Principal shareholders initially paid P312.5 million in September 2022 and the remaining balance of P937.5 million this week. These are booked under deposit for future stock subscription.

PBB said the approval for the increase in its authorized capital stock is still pending with the Securities and Exchange Commission.

The Caloocan-based thrift bank said it was eyeing to raise P1.75 billion from the sale of new shares to existing shareholders to fund general corporate requirements.

The mid-sized bank also plans to conduct a stock rights offering to raise a total of P500 million.

PBB said the stock rights offering and the private placement would be treated as separate transactions.

PBB was incorporated in 1997 to engage in the business of thrift banking.

It provides banking services and products including cash management, retail and corporate lending, deposit products, international trade finance, and treasury and trust products.

Since 2014, PBB has entered into three purchase agreements involving Rural Bank of Kawit, Bataan Savings and Loan Bank, and Insular Savings Bank.