MANILA – Sy-led Banco de Oro Unibank Inc. announced yesterday the approval by the Board of Directors of the Philippine Stock Exchange the bank’s plan to raise, through equity rights offer, up to $1 billion of additional Tier 1 capital.

In a disclosure with the PSE, BDO said the Bangko Sentral ng Pilipinas approved the capital-raising activity on May 15, 2012.

“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,” BDO Chair Teresita Sy, said.

BDO has tapped Citigroup, Deutsche Bank and J.P. Morgan as joint international lead managers and international underwriters while United Overseas Bank Limited will serve as international co-lead manager and international co-lead underwriter.

Also, BDO Capital & Investment Corp. will be the issue manager and domestic underwriter for the issuance.

Eligible stockholders can avail of the offer on June 14 “at a discount to the volume-weighted average price” of BDO’s common shares that would be determined before June 5.

Pricing and other final terms of the offer will be announced after June 5. Offer period is set from June 18-27, 2012 while rights listing at the PSE is expected on July 4, 2012.*PNA

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