BDO Unibank Inc., the country’s biggest lender controlled by tycoon Henry Sy, is expected to start shortly its P60-billion worth of stock rights offering after securing regulatory approval from the Philippine Stock Exchange.
Bangko Sentral ng Pilipinas cleared the issuance on Nov. 23, 2016.
BDO said it would use the proceeds from the stock rights offering to support the bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the domestic systemically important bank surcharge.
Domestic systemically important banks are those lenders whose distress or disorderly failure would cause significant disruptions to the wider financial system and the economy. The Bangko Sentral completed the determination of these banks following the framework released in October 2014.