PSBank undertakes rights offer
The Phillipine Savings Bank (PSBank) will launch a P1.5-billion rights offering in the last quarter of the year or the first quarter of 2008.
PSBank president and chief executive officer Pascual M. Garcia III said that they would want to finish the transactions this year so that fresh capital could strengthen its capital adequacy ratio (CAR). PSBank has a CAR of 17.7 percent as of end June this year.
Assisting the thrift bank in its fund-raising will be First Metro Investment Corp., the investment house of the Metrobank group of companies.
About 50 million common shares from its outstanding authorized but unissued shares will be offered to existing owner.
Garcia said that the rights offer will be pure Tier 1, or most preferred capital rising mode involving no future obligation but rather new money injected by existing shareholders.
PSBank has total listed and outstanding shares of 201,938,315, of which 42,473,585 are float shares. Its market capitalization stands at P12.823 billion.
It is believed that part of the proceeds of the P5 billion to as much as P10 billion proceeds Metrobank earns from its 10-year callable in five subordinated capital notes currently being marketed will be pumped-in into PSBank.
The offering is being undertaken to rebuild the bank’s CAR, which will drop between three percentage points and four percentage points when the lender finally complies with risk-weight-to-capital
Thrift banks with universal or commercial bank as mother firm, for now, have been given certain breathing space from
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