<article>Top Philippine universal bank <a style="color: #000080;" href="https://www.bdo.com.ph" target="_blank">BDO Unibank Inc</a> is seeking to raise up to $1.25 billion (P60 billion) through a stock rights offer in a bid to augment its medium-term growth goals.</article>

Top Philippine universal bank <a style="color: #000080;" href="https://www.bdo.com.ph" target="_blank">BDO Unibank Inc</a> is seeking to raise up to $1.25 billion (P60 billion) through a stock rights offer in a bid to augment its medium-term growth goals.
BDO&#8217;s board of directors approved the plan of the additional core capital that is expected to sustain the bank&#8217;s momentum in taking advantage of the country’s growth opportunities in favorable macroeconomic prospects.
The fresh capital is seen to also provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge.
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BDO&#8217;s controlling and majority shareholder <a style="color: #000080;" href="http://www.sminvestments.com">SM Investments Corp (SM)</a> expressed full support in its rights offer and expansion plans.
&#8220;SMIC commits to subscribe to its proportionate share and is willing to underwrite any shares not taken up by minority shareholders,&#8221; BDO said in its statement.
Details on the proposed pricing, rights ratio and timetable are still being finalized.
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BDO specifically hopes to further expand its presence in emerging growth areas in the consumer, provincial middle market and small and medium enterprises (SMEs) and the underserved segments, as well as in infrastructure-related lending/project finance in line with the government’s thrust to promote countryside development and ramp up infrastructure spending.
The bank cited its customer loan portfolio grew at a 19 percent compounded annual growth rate (CAGR) over the past five years, outpacing the industry’s 17 per cent CAGR.
&#8220;As of June 2016, BDO’s consolidated Common Equity Tier 1 (CET1) ratio and Capital Adequacy Ratio (CAR) of 11.3 per cent and 13.1 per cent, respectively, are above the current regulatory minimum levels, even with the gradual implementation of the DSIB surcharge,&#8221; BDO claimed.
BDO last traded at P107.00 per share.
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Philippines: BDO raising $1.25b to beef up medium-term goals

Philippines: BDO raising $1.25b to beef up medium-term goals

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Philippines: BDO raising $1.25b to beef up medium-term goals

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