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MANILA – BDO Unibank on Monday said it raised P43.5 billion in fresh capital from a stock rights offering, increasing its capital adequacy ratio to twice the regulatory minimum.
In a statement, the country’s biggest lender by assets said it hiked its capital from P101 billion to P145 billion from the sale of new shares to existing stockholders.
“The offer was oversubscribed, with shareholders applying for shares beyond their entitlement. The offer also saw strong participation from the bank’s domestic and international investors, despite challenging global market conditions,” said Nestor Tan, BDO president.
The capital increase raised the bank’s CAR from 15 percent to 20 percent, or two times the 10 percent required by the Bangko Sentral ng Pilipinas.
“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,” Tan said.
“The offer strengthened BDO’s common equity Tier 1 capital, and provides a comfortable buffer to the more stringent Basel III capital requirements expected to be implemented by the BSP,” he said, referring to new international standards for banks.
Tier I capital consists of the bank owners’ money, whereas Basel III refers to stricter standards set by the Bank for International Settlements starting 2013.
“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,” Tan said.
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