• BPI, PNB beef up capital via rights offer

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    Two listed banks, the Bank of the Philippines Islands (BPI) and Philippine National Bank (PNB), will further beef up their capital through separate stock rights offerings that will both start this month.

    In separate filings with the Philippine Stock Exchange (PSE), both banks disclosed their plans to do stock rights offering.

    BPI, in its own disclosure to PSE, has priced its stock rights offer at P67.50, which will have an entitlement ratio of one rights share for every 9.602 common shares held.

    “We write in connection with the offering for subscription of up to 370.4 million shares of common stock, with a par value of P10 a share of Bank of the Philippine Islands by way of a stock rights offering to existing eligible registered holders of common shares as of January 16, 2014,” the Ayala-led bank said.

    Approved by the company’s board on November 6, 2013, the offer period will be from January 20, 2014, to January 30, 2014.

    PNB, on the other hand, has priced its stock rights offering at P71 a share, which will have an entitlement ratio of 15 new shares for every 100 old shares held by its shareholders.

    The proceeds of the offer, according to the Lucio Tan-led bank, will be used primarily to build and refocus its consumer-lending business through capital infusions into Allied Savings Bank, a fully owned subsidiary of the Bank, as well as further strengthen its capital ratios under the Basel III standards which became effective on January 1, 2014.

    The proceeds from the offer will also support the bank’s asset growth in 2014 and in subsequent years. The shares will be offered from January 27, 2014, to February 3, 2014.

    Four days ago, the local bourse gave its green light to the planned stocks right offering of PNB, wherein the bank intends to raise as much as P6.5 billion.

    Specifically, the bank is planning to list up to additional 163 million common shares, with a par value of P40 a share, to cover the bank’s stock rights offering to all stockholders of record as of January 16, 2014.

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