UNIONBANK of the Philippines has set the final terms for its stock rights offering (SRO), through which it is looking to raise about P10 billion to support expansion.
In a disclosure to the local bourse on Tuesday, the Aboitiz-led bank said it will offer 158.8 million common shares under the SRO priced at P62.97 apiece.
The offering will be conducted from Sept. 10 to 21.
Eligible shareholders are entitled to subscribe to a share for every 6.6644 common shares as of the Sept. 3 record date. Ex-date is on Aug. 29.
The additional capital will boost the lender’s common equity Tier 1 and total capital adequacy ratio, it said.
“The proceeds from the stock rights offer will be used to allow for continued growth of assets of the bank,” UnionBank previously told the local bourse.
In May, UnionBank Chief Financial Officer and Treasurer Jose Emmanuel U. Hilado said Citibank has been tapped as the arranger for the lender’s stock rights offering.
He added that the bank can still tap other fund-raising instruments for its financing needs.
“The EMTN (euro medium-term note) Program that we set up last year was up to $1 billion,” Mr. Hilado earlier said. “We’ve drawn only $500 million. So we can draw another $500 million anytime.”
UnionBank raised P3 billion from long-term negotiable certificates of deposit in February, the first tranche of its approved P20-billion program.
The bank also secured $500 million from its offering of global notes in November last year.
Aside from UnionBank, other lenders such as Metropolitan Bank & Trust Co., Bank of the Philippine Islands and Rizal Commercial Banking Corp. have conducted SROs this year, raising P60 billion, P50 billion and P15 billion, respectively.
UnionBank, the ninth largest commercial lender in asset terms as of end-March, according to central bank data, logged a net income of P4.7 billion in the first semester, 8% higher than the P4.4-billion profit booked in the same period last year.
Shares in UnionBank closed at P78.90 each on Wednesday, down P1.90 or 2.35%. — Karl Angelo N. Vidal