MANILA, Philippines - Ayala Corp., the country's oldest conglomerate, said on Friday it will participate in the stock rights offer of its financial arm, Bank of the Philippine Islands (BPI).

BPI, the largest bank by market value and the third biggest by assets, said this week it plans to raise up to P10 billion from a rights offer of its common shares to strengthen its capital base.

"Our board of directors approved our subscription to our pro-rata share in the stock rights offering of the Bank of the Philippine Islands," Delfin Gonzalez Jr., Ayala's chief finance officer, said in a disclosure to the stock exchange.

The 175-year-old Ayala Corp. owns a third of BPI, which makes up nearly three-fifths of the group's net income, according to the company's 2009 annual report.

BPI, with a market value of $3.1 billion, has appointed JP Morgan (S.E.A.) Ltd as sole international lead manager and international lead underwriter. BPI Capital Corp. will be domestic issue manager and domestic lead underwriter for the rights issue.