BPI holds bell ringing ceremony for Php50-B stock rights offer
Shown here are, from left: Ayala Corporation CFO Jose Teodoro Limcaoco, BPI Vice Chairman Fernando Zobel de Ayala, BPI President and CEO Cezar P. Consing, Philippine Stock Exchange Chairman Jose T. Pardo, PSE Director Vivian Yuchengco, and PSE President and CEO Ramon Monzon.
Bank of the Philippine Islands (BPI) has listed 558,659,210 new common shares valued at c.Php50 billion, or Php89.50 per share, after a bell-ringing ceremony at the Philippine Stock Exchange today, May 4, 2018.
The new shares were issued to shareholders on record, with a ratio of 1:7.0594, or 1 new common share for every 7 shares held, or 14.2% of BPI’s outstanding common shares.
The Rights Offer received strong support from both domestic and foreign shareholders, such that a total of 683,258,317 shares were subscribed to, representing an oversubscription of 22.3% at the close of the offer on April 25.
"We thank our shareholders who have supported this exercise as we pursue our growth strategy this year," said BPI President and CEO Cezar P. Consing.
"We will continue to aim for efficiency and profitability as we harness the burgeoning and emerging opportunities brought about by our economic growth and favorable macroeconomic conditions."
Earlier, BPI revealed that it will use the additional capital raised from the stock rights offer to focus on four strategic priorities in the coming years -- digitalization, deposit franchise and delivery infrastructure, SME and retail business, and financial inclusion.
The Bank aims to bolster its digital platforms—desktop and mobile—to provide a seamless, secure, and reliable user experience for BPI clients. It also aims to focus on CASA (current account, savings account) growth and innovate to become a one-stop shop for integrated products and services. Untapped opportunities in the SME and retail segment will also be pursued. The microfinance business, through BPI Direct BanKo, a powerful vehicle for propagating financial inclusion, will also benefit from the stock rights offer as it expands its branch network in the provinces.
BPI Capital Corporation acted as Sole Global Coordinator and Lead Manager, Sole Domestic Manager, and Domestic Bookrunner and Underwriter; and Deutsche Bank AG, Hong Kong Branch, Goldman Sachs (Singapore) Pte., and J.P. Morgan Securities plc acted as Joint International Bookrunners and Underwriters for the Offer.
ABOUT BANK OF THE PHILIPPINE ISLANDS
The 166-year-old Bank of the Philippine Islands is the first bank in the Philippines and Southeast Asia. We are a commercial bank with an expanded banking license. We provide diverse financial services that include deposit taking and cash management, asset management, securities brokerage, foreign exchange and capital markets investments, bancassurance, corporate lending, leasing, and investment banking. BPI has significant financial strength, with strong Tier 1 capital adequacy ratios and profitability, underpinned by a strong risk management regime. BPI is rated investment-grade by international credit ratings agencies.