Union Bank of the Philippines (UnionBank) will proceed with its planned stock rights offer next month, as the lender works to raise fresh capital to support expansion.
In a disclosure on Friday, Aug. 10, the bank said they will offer up to 200 million common shares via a stock rights offering in September, two months later than the original plan.
Back in May, UnionBank chief financial officer and treasurer Jose Emmanuel U. Hilado said that the lender plans to issue P10 billion worth of additional shares by July of this year, after securing approval from the bank’s board of directors.
The Aboitiz-led lender told the Philippine Stock Exchange this week that they will be offering the additional shares to all stockholders on record as of Sept. 3.
The offer period will start on Sept. 10 and end Sept.21. The offer price is yet to be determined.
The additional capital will boost the lender’s common equity Tier 1 and total capital adequacy ratio of the bank.
“The proceeds from the stock rights offer will be used to allow for continued growth of assets of the bank,” UnionBank told the local bourse. — Melissa Luz T. Lopez