UnionBank sets final terms for stock rights offering

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UnionBank of the Philippines has set the final terms for its stock rights offering (SRO), where it is looking to raise about P10 billion to support expansion.

In a disclosure to the local bourse late Tuesday, Aug. 28, the Aboitiz-led UnionBank 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 of the bank.

“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.

UnionBank, the ninth largest commercial bank in asset terms as of end-March, logged a net income of P4.7 billion in the first hald of the year, 8% higher than the P4.4 billion profit booking in the same period last year. — Karl Angelo N. Vidal