The existing major stakeholders infusing fresh capital are the Hong Kong-based Lippo China Resources Ltd., and and Yao group. New investors are the Extra Year Investments Ltd., a designated investment vehicle of the Raiffeisen Zentralbank Osterreich AB (RZB) Group of Austria, and AO Capital Partners Ltd. of HongKong.
The equity investments of these foreign investors are in line with the Bank’s corporate goal of establishing a regional and international presence in the near term to expand its client and market network, a top bank official said.
"The P3-billion additional capital is intended to strengthen the bank’s capital base in the light of the effects of the new International Accounting Standards (IAS) and the Philippine financial reporting requirements on the capital of banks, now being implemented by the Bangko Sentral ng Pilipinas (BSP), and in preparation for the requirements of Basel II which shall be implemented by BSP in 2007," EIB chairman Sergio R. Ortiz-Luis Jr. said.
Export Bank also concluded an agreement with the Philippine Depposit Insurance Corp. (PDIC) for the sale of P10 billion worth of non-performing assets (NPAs) acquired from Urban Bank and Urbancorp Investments Inc. when it acquired as "white knight" with these closed institutions in January 2002.
The Lippo Group, represented by Lippo China Resources Ltd.has total resources of $1.17 billion. It is primarily into financial services, property investments and development and food business, and its line-up of financial services include fund management, underwriting, insurance corporate finance, securities broking, securities trading and treasury investments, commercial banking, consumer finance, mortgage finance, and insurance.
The Yao Group, represented by Alfredo M. Yao, has investments in several companies namely Zest-O Corp., Asiawide Refreshments Corp. and Philippine Business Bank.
Extra Year Investments Ltd. is a special purpose vehicle (SPV) which is beneficially owned by Raiffeisen Zentralbank Osterreich AB (RZB) of Austria. RZB is the largest bank in Austria and one of this country’s leading commercial and investment banks.
AO Capital Partners Ltd. (AO Capital) is an affiliate of American Orient Capital Partners Holdings Ltd. (AOCP Holdings). AOCP Holdings is an investment and financial advisory services firm, covering Asia Pacific region. AOCP Holdings’ founding shareholders include American International Group Inc. (AIG), one of the world’s leading international insurance and financial services organization.