China Bank gets SEC okay for CBCC capital hike

CHINA BANKING Corp. (China Bank) has received the Securities and Exchange Commission’s (SEC) green light for its capital infusion into its investment house China Bank Capital Corp. (CBCC).

In a disclosure to the Philippine Stock Exchange ( PSE) on Thursday, the Henry Sy-led bank announced that the SEC on June 30 approved the lender’s wholly owned subsidiary’s capital stock hike to P2 billion from P500 million.

“In compliance with your requirements, please be informed that the Board of Directors of the Bank noted this afternoon, the approval by the Securities and Exchange Commission (SEC) on 30 June 2017 of the amendments of the Articles of Incorporation of Bank subsidiary China Bank Capital Corporation, to reflect the increase in its capital stock from P500 million to P2 billion, and change of its principal office address to 28th Floor BDO Equitable Tower, 8751 Paseo de Roxas, Makati City,” China Bank said in a statement dated July 5.

In February, the listed lender’s board of directors okayed its move to infuse additional capital amounting to P500 million to CBCC, bringing its equity to P1.23 billion.

“The SEC approved the increase in authorized capital stock of China Bank Capital from P500 million to P2 billion. We will add P500 million to the original paid-in capital of P500 million, but total equity of CBCC will include income earned in 2016 and beyond,” China Bank Senior Vice-President and Investor and Corporate Relations Group Head Alexander C. Escucha said via text message.

He also noted their P15-billion stock rights offer also boosted the capital of its subsidiaries for its future growth plans.

“Our P15-billion stock rights offering gave us the ammunition to beef up capital of subsidiaries for their future growth,” Mr. Escucha said.

Through its stock rights offering that ran from April 24 to May 5, China Bank raised P15 billion as planned amid strong investor appetite.

The listed lender saw its net income reach P6.45 billion in 2016, up 15% from the consolidated and audited P5.6 billion it earned in 2015 on the back of solid performance of its core businesses.

Shares in China Bank were barely changed on Thursday, gaining just 0.14% to close at P36.70 apiece. —