Allied Bank raises capital to P20B

The board of directors of Allied Banking Corp. has approved the increase in the bank’s authorized capital stock to P20 billion from P500 million.

This as the board decided to convert the upper Tier 2 subordinated notes worth $50 million into capital “and waived the requirement that the conversion of the said notes maybe made only on interest payment date subject to shareholders’ approval.”

In a report to the  Philippine Stock Exchange (PSE), Allied Bank corporate secretary Cecilia Pesayco said the finalization of the capital hike and the subsequent conversion of the subordinated notes into capital will still be subject to the stockholders’ approval.

“The board is calling a stockholders’ meeting on March 12 to approve the conversion of the notes to common shares and increase the authorized capital stock to P20 billion divided into 20 million shares at P1,000 par value,” Pesayco said.

In the same board meeting, Michael G. Tan was elected into the board replacing Alejandro Chua, who resigned from the board. Michael is the son of bank chairman Lucio Tan.

Meanwhile, the Supreme Court ruling “with finality” lifting the sequestration on the shares of Lucio Tan on several companies, including Allied Bank, will now allow the bank to move aggressively in the next few years.

Allied Bank president Reynaldo A. Maclang said the SC ruling will allow the bank to go full blast with its long-term plans.

Last Tuesday, the SC decided in favor of lifting the sequestration order on Lucio Tan’s shares in Fortune Tobacco Corp., Foremost Farms Inc., Shareholdings Inc. and Allied Bank after the Presidential Commission on Good Government (PCGG) sought a reconsideration of an earlier ruling.