BDO all set for P60-B stock rights offer in Jan 2017

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BDO Unibank Inc. is set to raise P60 billion in fresh funds from a stock rights offering in January next year after securing all the necessary approvals from regulators.

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In separate disclosures to the Philippine Stock Exchange (PSE), the lender said its board of directors and the PSE has approved on Wednesday the program to raise up to P60 billion. The stock rights offer consists of 800 million shares.

On November 23f, the Bangko Sentral ng Pilipinas gave the bank the thumbs up to proceed with the offer.

The final price will be revealed on January 3, and the offer period is expected to run from January 16 to 24. The shares are targeted to be listed on the PSE on January 31.

BDO Capital & Investment Corp. was appointed as lead underwriter and joint global coordinator and bookrunner together with Credit Suisse (Singapore) Limited and UBS AG Hong Kong Branch. Goldman Sachs (Singapore) Pte. and The Hongkong and Shanghai Banking Corporation Limited Singapore Branch were hired as joint bookrunners.

The proceeds from share sale would fund its lending business.

“The proceeds from the stock rights offer will support the BDO’s medium-term growth objectives amid the country’s favorable macroeconomic prospects and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge,” BDO said.

“The additional capital will also allow BDO to sustain its momentum and take advantage of the country’s growth opportunities,” it added.

Las month, SM Investments Corp. (SMIC) Chief Financial Officer Jose T. Sio said SMIC will subscribe to about P25 billion of BDO’s P60 billion stock rights offering to support the country’s infrastructure program.

Sio said it would be the conglomerate’s contribution to the country’s accelerated infrastructure spending, programmed at 5.4 percent of gross domestic product (GDP) next year. The spending program is expected to increase further to 7.2 percent of GDP by 2022.

SMIC is the parent of BDO, the largest Philippine bank in terms of assets, led by Henry Sy, the richest man in the country.

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