PBB to raise ₧1.75B in fresh capital

Philippine Business Bank inc. (PBB) on Monday said it is set to raise some p1.75 billion in cash from both private placements and stock rights offering (SRO) to eligible shareholders.

in its disclosure, the bank said it has raised p1.25 billion in private placement, which it asked from its principal shareholders and was fully paid on January 10.

For the SRO, meanwhile, the bank gave 1 rights share for every 4.6428 shares owned. it will offer up to 50 million common shares.

“The SRO and the private placement will be treated as separate transactions and will run independently of each other. entitlement ratio of 4.6428 is final,” the bank said.

“The proceeds from the offer will be used primarily to increase pbb’s capital to comply with minimum capital requirement for a universal bank license and for other general corporate purposes including but not limited to investments, loans, maintenance capex [capital expenditures], operating expenses and other opportunities.”

The bank said proceeds will expand the bank’s capability to develop more businesses and harness opportunities in the financial services space.

“The increase will also enable PBB to meet the growing demands of the banking business and positions the bank to exploit opportunities as the economy rebounds.”

last year, the bank submitted an application for an increase in its authorized capital stock with the Company Registration and Monitoring Department of the Securities and exchange Commission (SEC) and the Bangko Sentral ng pilipinas (BSP).

The BSP issued the Certificate of Authority dated november 28, which the bank submitted to SEC in support of its application for the amendment of articles of incorporation to increase its authorized capital stock.

The application for the increase in capital stock was approved by the SEC on January 19.