Bank of the Philippine Islands (BPI) said it obtained the approval of the Philippine Stock Exchange (PSE) to conduct a stock rights offering (SRO) to fund its business expansion.

In a disclosure to the local bourse on Friday, the Ayala-led BPI said the PSE approved its rights offering that would raise up to P50 billion.

The price of the rights will be announced on March 27, while the offering will be conducted from April 16 to 25.

The SRO is open to eligible existing common shareholders of the bank as of April 6.

Ayala Corp. (AC), one of BPI’s principal shareholders, has expressed its support for the bank’s rights offering, saying it will exercise it preemptive rights. This entails AC to purchase additional shares prior to the general public offering.

According to BPI, the proceeds from the capital raising exercise will be used to fund the expansion of its loan growth particularly in the consumer, small to medium enterprises and microfinance segments. — Karl Angelo N. Vidal

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