BDO Secures PSE Approval for PhP60B Rights Offer

Makati—(PHStocks)—BDO Unibank Inc. (PSE: BDO) announced that the Board of Directors of the Philippine Stock Exchange (“PSE”), during its meeting on 14 December 2016, approved the listing of the new common shares to be issued from the Bank’s program to raise up to PhP60 billion (approximately $1.2 billion) in additional core capital through a stock rights offer (the “Offer”). The Bangko Sentral ng Pilipinas (BSP) had given its clearance to proceed with the Offer on 23 November 2016.

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 (DSIB) surcharge.

BDO has 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 Offer will be made to all eligible stockholders of record as of 10 January 2017 at a discount to the volume-weighted average price of the Bank’s common shares listed on the PSE for a period to be determined prior to 3 January 2017. The final terms of the Offer, including pricing and rights ratio, will be determined by BDO in consultation with the Joint Global Coordinators and Issue Manager and will be announced thereafter. The offer period will be from 16 January 2017 to 24 January 2017, and the rights shares are expected to list on the PSE around 31 January 2017.

SM Investments Corp. (SMIC, PSE: SM), BDO’s controlling and majority shareholder has expressed its full support for the Bank’s expansion plans and the proposed rights offer. SMIC commits to subscribe to its proportionate share and is willing to underwrite any shares not taken up by minority shareholders.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate, commercial and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.

BDO has one of the largest distribution networks, with more than 1,000 operating branches and over 3,500 ATMs nationwide. It also has a branch in Hong Kong as well as 25 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of 30 September 2016. For more information, please visit www.bdo.com.ph.

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