CONGLOMERATE SM Investments Corp. (SMIC) is subscribing to 41.66 percent of BDO Unibank Inc.’s planned P60-billion stock rights offering to help its banking subsidiary raise more money for lending.
Jose T. Sio, SMIC chief financial officer, recently told reporters that SMIC will buy P25 billion of the P60- billion BDO share sale as the bank intends to loan out funds for various infrastructure and expansion projects.
The conglomerate is eyeing the business opportunities presented by the government’s accelerated infrastructure spending, Sio said.
The Duterte administration has programmed to spend up to 5.4 percent of the gross domestic product (GDP) on infrastructure development and up to 7.2 percent of GDP during the last year of its term in 2022.
BDO is targeting the stock rights offering to happen in January next year.
BDO earlier announced that it was planning to raise P60 billion in fresh capital to support the its medium-term growth by leveraging on the country’s rosy economic prospects.
The Sy-led bank is yet to determine the number of offer shares, pricing and timetable for the transaction.
BDO is the largest Philippine bank in terms of asset, led by the country’s richest man Henry Sy.