BDO Unibank Inc., the country’s largest lender controlled by tycoon Henry Sy, set the final terms for a P60-billion stock rights offering.
BDO said in a statement it would offer up to 716.4 million common shares to stockholders, with each eligible stockholder entitled to subscribe to one common share for every 5.095 common shares held as of record date of Jan. 10 at P83.75 per rights share.
“The offer price is based on the 15-day volume-weighted average price of BDO common shares listed at the Philippine Stock Exchange at a discount of 23.4 percent,” it said. The stock rights offer will start at 9 a.m. on Jan. 16 and end at 12 p.m. on Jan. 24, 2017.
BDO appointed Credit Suisse, UBS and BDO Capital as joint global coordinators and bookrunners, with Citigroup, Goldman Sachs and HSBC as joint bookrunners. BDO Capital will serve as issue manager and domestic underwriter.
“The fresh capital will support the bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the domestic systemically important bank surcharge,” it said.
SM Investments Corp., BDO’s controlling and majority shareholder, expressed full support for the bank’s expansion plans and the proposed rights offer.
SMIC committed to subscribe to its proportionate share and said it was willing to underwrite any shares not taken up by minority shareholders.
BDO is a full-service universal bank which provides a wide range of corporate, commercial and retail banking services.
BDO has one of the largest distribution networks, with more than 1,100 operating branches and over 3,500 ATMs nationwide. It also has a branch in Hong Kong and 25 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
BDO posted a 10-percent increase in net income in the first nine months of 2016 to P19.3 billion from a year ago, driven by strong loans and deposits.
Net interest income grew 16 percent to P48.4 billion. Customer loan portfolio expanded 15 percent to P1.4 trillion, on broad-based growth across all market segments.
Total deposits rose 14 percent to P1.8 trillion.
For 2017, BDO is eyeing a 10-percent growth in net profit to P28.810 billion from the 2016 projection of P26.129 billion amid the robust domestic economy.