Bank of the Philippine Islands (PSE: BPI) approved a stock rights offering (SRO) of common shares to eligible shareholders to raise up to PhP50 billion to support its growth and strategic initiatives in the coming years.
The bank believes that the Philippine banking sector continues to present significant medium and long-term growth prospects and that it is well-positioned to capitalize on them.
With the planned SRO, the bank expects to grow and strengthen its market-leading businesses and core franchises through the acceleration of lending activities across consumer, SME, and microfinance segments to capture the positive momentum in the Philippine economy.
The Bank will continue investing in its delivery infrastructure in order to improve both efficiency and client coverage via digitization and electronic channels, and additional BPI Direct BanKo, BPI Family Bank and parent bank branches.
“Our planned stock rights offer is a vote of confidence in our country, our clients, and ourselves. The economic landscape will continue to change for the better in the next five years. We want to contribute to and benefit from that change,” said BPI President and Chief Executive Officer Cezar P. Consing.
Determination of the final terms and conditions of the stock rights offer, including the final issue size, entitlement ratio, offer price, record date, appointment of the parties and other terms, has been delegated to the bank’s management. The bank expects to launch the SRO after receiving the required regulatory approvals.
Ayala Corp. (PSE: AC), BPI’s major shareholder, has indicated its support of the stock rights offer.