BDO raises P43.5B from stock rights offering

Posted at 07/02/12 10:27 AM

MANILA, Philippines - BDO Unibank Inc, the Philippines' biggest lender by assets, successfully completed its $1 billion common stock rights offering.

In a statement, BDO said a total of 895,218,832 rights shares were issued at a price of P48.60 each. The offer period ended on June 27.

"The offer raised gross proceeds of P43.5 billion (equivalent to over $1 billion). This represents a key milestone not only for BDO but also for the Philippines, being the largest ever equity capital markets transaction by a Philippine issuer," BDO said, in a statement.

The shares will be listed on the Philippine Stock Exchange on July 4. This will bring BDO's issued and outstanding shares to 3,580,875,328.

BDO said the stock rights offer strengthened the bank's common equity Tier 1 capital.This is expected to provide a comfortable buffer to the Basel III capital requirements that will be implemented by the Bangko Sentral ng Pilipinas.

"BDO believes the offer has better-positioned it to fulfill its medium-term growth objectives and take advantage of the positive outlook on the Philippine economy," the bank said.

Citi, Deutsche Bank and J.P.Morgan served as joint international lead managers and international underwriters. United Overseas Bank Limited was the international co-lead manager and international co-lead underwriter, while BDO Capital & Investment Corporation was issue manager and domestic underwriter.