UnionBank finalizes P10-billion stock rights

MANILA, Philippines — Aboitiz-led Union Bank of the Philippines has finalized the terms of its stock rights offer from which it intends to raise as much as P10 billion to fund majority of the projected loan availments as well as other other business growth.

The bank is set to sell 158.8 million common shares to existing shareholders at P62.97 per share. Existing shareholders will be entitled to one rights share for every 6.6644 common shares held.

The fund raising activity will start Sept. 10 and end on Sept. 21.

 “The bank aims to raise approximately P10 billion through the stock rights offering, which will be used to fund a majority of the projected loan availments from the bank for the remainder of 2018, as well as for general purposes and to fund other business growth,” UnionBank said.

Aboitiz Equity Ventures (AEV), the Insular Life Assurance Co. Ltd., and Social Security System (SSS) not only agreed to subscribe for at least entitlement shares but also committed to acquire remaining rights shares unsubscribed to make sure the offering is fully subscribed.

AEV is the single biggest shareholder of UnionBank with 49.12 percent. Other major shareholders are Insular Life and SSS.

Last October, the bank launched a P70 billion funding program consisting of offshore borrowings as well as domestic borrowings through the stock rights offering, issuance of long term negotiable certificates of deposits (LNTCDs), among others.

UnionBank has so far raised half of its $1 billion medium term note program successfully tapping $500 million last November.

UnionBank raised P3 billion last February from the first tranche of its P20-billion LNTCD offering to improve the bank’s debt maturity profile and help grow its business portfolio.