Chinabank sets price of rights offer at P49.50

MANILA, Philippines - China Banking Corp. has set the price of its rights offer at P49.50 per share, it said in a disclosure to the Philippine Stock Exchange (PSE).

Chinabank said it would issue 161.6 million shares from April 30 to May 7.

The rights offer, approved by Chinabank’s board in March 5, will have a record date of April 24.

“We write in connection with the offering for subscription of up to 161,616,162 shares of common stock, with a par value of P 10 per share of Chinabank, by way of a stock rights offering to existing eligible registered holders of common shares as of April 24, 2014 at the entitlement ratio of one rights share for every 8.83 existing common shares held by such eligible shareholders,” the bank told the PSE.

In March this year, Chinabank  announced plans to raise up to P8 billion through a rights offering to finance its strategic expansion program

The bank said it has tapped Citigroup and JP Morgan as joint global coordinators, lead managers and underwriters for the rights issue.

Proceeds from the rights issue would serve as additional capital to enable the bank to pursue growth strategies, it said.

The capital raising scheme would also ensure the bank’s capital adequacy levels to remain above the new Basel III requirements, particularly in light of its recent acquisition of Planters Development Bank.