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By Maricel E. Burgonio Reporter
THE policymaking body of the
Bangko Sentral ng Pilipinas (BSP) has approved a plan by Banco de
Oro Unibank Inc. to raise additional capital for its expansion.
BSP Deputy Governor Nestor
Espenilla Jr. said the Monetary Board approved BDO Uni-bank’s
proposal to issue tier 2 capital amounting to P10 billion in the
form of unsecured subordinated debt.
“It is qualified as tier 2
capital. It will be used for the bank’s expansion,” Espenilla
told reporters.
The debt paper will mature in 10
years, but the bank can opt to retire them in five years.
BDO Unibank earlier said its
profits jumped 25 percent to P3.18 billion in the first half of the
year from P2.5 billion in the same period last year.
Its net interest income, or gains
from its lending business, climbed 19 percent to P10.96 billion.
Noninterest income, or earnings
from its fee-based business, grew 48 percent to P9.05 billion from
P6.1 billion last year.
Nestor V. Tan, BDO Unibank
president, said the lender would need to raise $200 million this
year or next year to boost its capital following the merger between
BDO and Equitable PCI Bank (EPCIB).
The merger, which is seen to
create the country’s second-largest lender, would displace Bank of
the Philippine Islands.
EPCIB and BDO announced their
merger plan last November, and are waiting for a favorable Supreme
Court decision on the legality of the sale of state-run Social
Security System’s shares in EPCIB to BDO in 2003.
BDO offered to buy 28 percent of
the pension fund’s shares in EPCIB for P43.50 a share, but the
deal was put off due to a case filed by a group of pensioners.
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