Conglomerate San Miguel Corp. said 100-percent owned subsidiary SMC Equivest Corp. invested P5.5-billion worth of capital into Bank of Commerce through the purchase of the latter’s preferred shares.
The additional equity investment of SMC Equivest brought Bank of Commerce closer to its objective to have its commercial banking license upgraded to a universal banking license, SMC said.
“We’re confident that in this time of pandemic, the banking sector will be essential to our country’s economic recovery, and will provide invaluable help both to our industries and Filipinos,” SMC president and SMC Equivest chairman and president Ramon Ang said in a statement.
“BankCom can help fulfill the needs of both businesses and consumers for loans and other financial services at this critical time,” Ang said.
Apart from boosting the bank’s capacity for lending and investing, Ang said the capital infusion would help enable the bank to improve operational processes through automation, strengthen cybersecurity and offer product integration with Financial Technology players or fintechs and other banking partners.
He said the investment affirmed SMC’s and SMC Equivest’s optimism and strong outlook of growth in the banking sector and their commitment to support BankCom in expanding its business prospects and advancing towards becoming a universal bank.
The net proceeds will be used to increase the bank’s funding base to accelerate corporate and consumer loan growth, support capital expenditures in upgrading its banking technology and offer a wider menu of financial services.
Data showed that as of March 2021, prior to the infusion, Bank of Commerce was the 16th largest bank in the country in terms of assets and 17th in terms of capital.