May 28, 2012 - BDO Unibank, Inc. ("BDO") announced today that the Board of Directors of the Philippine Stock Exchange ("PSE"), during its meeting on May 23, 2012, approved BDO's program to raise up to US$1 billion of additional Tier 1 capital through an equity rights offer (the "Offer") of common shares (the "Rights Shares"). The Offer previously received clearance from the Bangko Sentral ng Pilipinas ("BSP") on May 15, 2012.
The capital raise is intended to support the Bank's medium-term growth objectives and is being conducted in anticipation of the more stringent Basel III capital requirements expected to be implemented by the BSP. The additional capital is expected to provide a sufficient buffer on top of the new minimum capital adequacy requirements. The Bank is optimistic about the outlook on the Philippine economy, driven by a strong consumer sector and opportunities in the SME, middle market and large corporate segments.
BDO has appointed Citigroup, Deutsche Bank and J.P.Morgan to serve as Joint International Lead Managers and International Underwriters, United Overseas Bank Limited as International Co-Lead Manager and International Co-Lead Underwriter and BDO Capital & Investment Corporation as Issue Manager and Domestic Underwriter.
The Offer will be made to all eligible stockholders of record as of June 14, 2012 at a discount to the volume-weighted average price of the Bank's common shares listed on the PSE for a period to be determined prior to June 5, 2012. The final terms of the Offer, including pricing and rights ratio, will be determined by BDO in consultation with the Joint International Lead Managers and Issue Manager and will be announced thereafter. The offer period will be from June 18 to June 27, 2012 and the rights shares are expected to list on the PSE around July 4, 2012.
SM Investments Corp., the International Finance Corp. and United Overseas Bank - the bank's strategic investors - have expressed their support for the Bank's expansion plans and the proposed rights offer. SMIC has committed to subscribe for at least its minimum allotment of Rights Shares.
BDO Chair Teresita T. Sy said "This capital raising is intended to support the growth and expansion of the bank amidst the positive sentiments on the economy and at the same time strengthen the bank's capital position in anticipation of new Basel III requirements."
About BDO
BDO is a full-service universal bank that provides a complete array of industry-leading products and services to the retail and corporate markets including Lending (corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management, and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage, and Stock Brokerage services.
BDO has one of the largest distribution networks, with more than 740 operating branches and over 1,600 ATMs, nationwide. As of 31 December 2011, BDO is the country's largest bank in terms of total resources, customer loans, total deposits and assets under management. For more information, please visit www.bdo.com.ph.
Banco De Oro
BDO Corporate Center
7899 Makatl Avenue
Makali City 0726. Philippines
Swift Code. BNORPHMM
Telephone Number: +63(2) 840 7000
www.bdo.com.ph
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