The BSP is proposing a minimum capital adequacy ratio (CAR) of 12.5 percent from 10 percent, and a doubling of the Tier 1 ratio to 10 percent from 5 percent effective January 2014. Currently, BDO’s consolidated CAR and Tier 1 ratios are at 15.6 percent and 10.2 percent, respectively. The new capital will provide a sufficient buffer on top of the new minimum capital levels and allow BDO to sustain its growth momentum. The Bank is optimistic about the outlook on the Philippine economy and hopes to continue with its faster-than-industry loan growth, driven by a strong consumer sector and opportunities in the SME, middle market and large corporate segments.
The approximately 1:3 rights offer which will be offered at an indicative discount of 20%-25% to market will allow all shareholders to proportionally participate in the capital-raising program. SM Investments Corp., the International Finance Corp. and United Overseas Bank – the bank’s strategic investors – have expressed their support for the Bank’s expansion plans and the proposed rights offer. SMIC has committed to subscribe to its proportionate share and is willing to underwrite the shares not taken up by the minority shareholders.
BDO Chair Teresita T. Sy said "This capital raising is intended to support the growth and expansion of the bank amidst the positive sentiments on the economy and at the same time strengthen the bank’s capital position in anticipation of new Basel III requirements.”
Firm details on the proposed pricing, rights ratio and timetable will be disclosed once these are finalized.
About Banco de Oro (BDO)
BDO is a full-service universal bank that provides a complete array of industry-leading products and services to the retail and corporate markets including Lending (corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management, and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage, and Stock Brokerage services.
BDO has one of the largest distribution networks, with more than 740 operating branches and over 1,600 ATMs, nationwide. As of 31 December 2011, BDO is the country’s largest bank in terms of total resources, customer loans, total deposits and assets under management. For more information, please visit www.bdo.com.ph.
- https://www.affordablecebu.com/
