East West Banking Corp. said on Tuesday it will issue this month P8 billion worth of stock rights involving 371 million shares at P21.53 per share to raise funds for investment this year.
It said in a statement the price was based on the computed volume-weighted average price of East West’s common shares during the 15 consecutive trading days immediately prior to pricing date, subject to a 12.8 discount.
“The bank expects that the net proceeds will be initially invested in interbank placements and investments allowed under BSP (Bangko Sentral ng Pilipinas) regulations, but will eventually be reinvested in loans to be disbursed within a period of six to 12 months,” it said in a disclosure to the stock exchange.
The offer was approved on Jan 29. Record date will be on April 21, while the offer will run from April 24 to 30.
In January, East West announced it will form an insurance brokerage subsidiary for its non-life products in line with its expansion initiatives within the year.
The bank’s net income was almost flat last year, just inching up to P2.073 billion from P2.056 billion a year ago.
EastWest, a commercial bank led by the Gotianum family through parent company Filinvest Development Corp, started operations in 1994. The bank holds 100 percent of East West Rural Bank Inc. and 99.84 percent of Green Bank Inc. (A Rural Bank).