BPI's P10-billion stock rights offer oversubscribed

MANILA, Philippines - Bank of the Philippine Islands (BPI) raised P10 billion from a stock rights offer that was over subscribed by P4.176 billion as applications for subscriptions exceeded the 307.7 million rights shares.

In a report, BPI corporate secretary Carlos B. Aquino said total applications reached 436 million shares, with shareholders owning 98.6 percent of the bank participating in the offering.

BPI main shareholders are the Ayala Group (33 percent), Singapore’s DBS Bank (20 percent), and the Roman Catholic Archdiocese of Manila (8.5 percent).

Aquino said the share issuance is part of the bank’s five-year program designed to strengthen its third leading position in the country’s banking industry.

The P10 billion raised from the stock rights offer, plus the bank’s forecast average loan growth of between 10 percent to 15 percent, would be able to fund the bank’s five-year expansion program.

BPI president and chief executive officer Aurelio Luis R. Montinola III said the funds raised from the stock rights offer could be used “to take advantage of any opportunity.”

Montinola likewise pointed out that the funds would cover all capital regulatory requirements as result of the international Basel II and III frameworks.

“We have roughly P350 billion in customer loans, and we are projecting an annual loan growth of between 10 to 15 percent,” he added.

The commercial bank recorded a net income growth of P8.5 billion in 2009, 32.8 percent more than the P6.4-billion profit in 2008.

In the first semester this year, BPI reported a net income of P5.6 billion.

BPI accounts for 13 percent of Philippine banking system in terms of assets. It operates a network of 831 branches and 1,573 ATMs.