Aboitiz holding firm subscribes over P5 B in UnionBank stocks

Aboitiz Equity Ventures Inc. (AEV) pumped in P5.08 billion in fresh funds to banking arm Union Bank of the Philippines in the recently completed stock rights offering.

AEV acquired 82.77 million shares at P62.97 per share last Sept. 28, bringing its shareholdings in UnionBank to 600.73 million shares equivalent to a 49.36 percent stake.

UnionBank recently completed a fund raising activity involving the sale of 158.8 million shares to existing shareholders at P62.97 million shares to bankroll majority of the projected loan disbursements as well as other business growth.

State-run pension fund manager Social Security System spent P1.91 billion to acquire 30.28 million shares of UnionBank, bringing its shareholdings to 224.88 million or 18.48 percent of the listed bank.

Likewise, the Insular Life Assurance Co. Ltd. also spent P1.68 billion to 26.67 million shares, bringing its stake in UnionBank to 16.29 percent or 198.27 million shares.

Last October, the bank owned by the Aboitiz family launched a P70 billion funding program, consisting of offshore borrowings as well as domestic borrowings through the stock rights offering, issuance of long term negotiable certificates of deposits (LNTCDs), among others.

UnionBank has so far raised half of its $1 billion medium term note program, successfully tapping $500 million last November.

It raised P3 billion last February from the first tranche of its P20-billion long-term negotiable certificates of time deposits (LTNCDs) offering to improve the bank’s debt maturity profile and help grow its business portfolio.

The Aboitiz-led bank has decided to shift and issue P20 billion worth of bonds or commercial papers as it continues to tap both the onshore and offshore debt markets for fresh funds.

BSP Governor Nestor Espenilla Jr. had said the regulator expects banks to shift to the issuance of bonds and commercial papers instead of LTNCDs in tapping the domestic capital market.