UnionBank raises P10 billion via stock rights offer

MANILA, Philippines — Aboitiz-led Union Bank of the Philippines has raised P10 billion through its stock rights offering amid robust participation from shareholders.

In a disclosure to the Philippine Stock Exchange (PSE), the listed bank said it issued 327.12 million shares at a price of P30.57 apiece to existing shareholders.

This brought the number of issued shares of UnionBank to 3.32 billion, up from 2.99 billion. The new rights shares were issued by the bank and listed on the PSE yesterday.

“The strong response from our shareholders to the stock rights offering underscores their confidence in our strategic objective to become the best retail bank in the country,” UnionBank president and CEO Edwin Bautista said.

The SRO was fully subscribed to by the bank’s principal shareholders, namely Aboitiz Equity Ventures, the Social Security System and Insular Life.

“Proceeds from the stock rights offering will be utilized to support the bank’s strategic growth initiatives,” UnionBank said.

CLSA Exchange Capital Inc. and Unicapital Inc. acted as joint underwriters, while Citigroup Global Markets Ltd. acted as capital markets adviser.

In February 2023, the Aboitiz-led lender raised P12 billion through the issuance of shares to existing shareholders to fund the capital infusion to its digital banking arm and for other general corporate purposes.

UnionBank also raised P40 billion through a stock rights offering in May 2022 to partially fund the acquisition of the retail banking business of global banking giant Citigroup Inc. in the Philippines.

In late October 2022, the bank’s board of directors approved capital raising activities of up to P20 billion, which may take in the form of a stock rights offering to all existing shareholders or a private placement, subject to market conditions.

The listed bank booked a net income of P2 billion in the first quarter, down by 41.2 percent from the same period a year ago, as it continued to allocate resources towards its takeover of the consumer banking business of global banking giant Citi in the Philippines.