By Karl Angelo N. Vidal
BANK of the Philippine Islands (BPI) has set the final terms for its stock rights offering (SRO) where it is looking to raise P50 billion to fund its business expansion.
In a disclosure to the local bourse on Monday, the Ayala-led BPI said it will offer 558.7 million common shares under the plan priced at P89.50 apiece.
The offering will be conducted from April 16 to 25.
Eligible shareholders are entitled to subscribe to a share for every 7.0594 common shares as of the April 6 record date. Ex-date is on April 3.
BPI said proceeds from the capital raising exercise will be used to fund the expansion of its loan portfolio particularly in the consumer, small to medium enterprises and microfinance segments.
The fresh funds will also finance the expansion of its delivery infrastructure via investments in digitalization as well as additional branches of BPI, BPI Family Savings Bank and BPI Direct BanKo.
Debt watcher Moody’s Investors Service said the SRO of BPI is credit positive for the lender as this will bolster its capital buffers.
Ayala Corp., one of BPI’s principal shareholders, has expressed its support for the rights offering, saying it will exercise it preemptive rights, meaning AC will purchase additional shares prior to the general public offering.
Aside from BPI, other Philippine banks have also announced plans to conduct SROs.
Metropolitan Bank & Trust Co. is offering 799.8 million common shares priced at P75 apiece until tomorrow, April 4.
The SRO is expected to raise P60 billion which will also be used to fund its loan portfolio expansion as well as to fully acquire its credit card arm Metrobank Card Corp. from ANZ Funds Pty. Ltd.
Meanwhile, Rizal Commercial Banking Corp. plans to raise P15 billion via its own SRO. Proceeds will help expand its loan business as well as strengthen capital to Basel 3 standards.
In 2017, BPI booked a net profit of P22.42 billion, up 1.7%.
Shares in BPI closed at P115 apiece on Monday, down two pesos or 1.71%.

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