UnionBank raises P12 B from SRO

Union Bank of the Philippines has successfully raised P12 billion from its recently-completed Stock Rights Offering (SRO) to existing shareholders.

In a disclosure to the Philippine Stock Exchange, the bank said it has concluded the offering of approximately 210.97 million common shares priced at P56.88 per share.

Union Bank of the Philippines

The shares were offered to eligible shareholders as of the record date of Jan. 12, 2023 at a ratio of 1 rights share for every 10.1536 existing common shares held.

The newly issued shares were listed on the PSE on Feb. 6, 2023—resulting in an increase in the bank’s total outstanding capital to over 2.35 billion shares.

“The SRO garnered strong participation from UBP’s shareholders, led by its principal shareholders, Aboitiz Equity Ventures, Social Security System and Insular Life, recording an oversubscription,” UnionBank said.

It added that, “The offering was almost fully subscribed even at the first round of the offer, with the second round also heavily oversubscribed.”

Proceeds from the SRO will be used to solidify the Bank’s capital adequacy and financial strength, and to execute its strategic growth initiatives by expanding its balance sheet to meet growing demand from UBP’s target markets.

Specifically, UBP will deploy additional capital to UnionDigital, support loan availments by customers of both retail loans and corporate and commercial loans.

UnionBank President and CEO Edwin Bautista

“The strong participation of our existing shareholders on our Stock Rights Offering, reflects their trust in the value that will be created by executing our strategies,” said UnionBank President and CEO Edwin R. Bautista.

He added that, “With the completion of our SRO, we aim to pursue our long-term objective to become a leader in retail banking in the Philippines.”

CLSA Exchange Capital, Inc., and Unicapital Inc. acted as Joint Global Coordinators, and Joint Domestic Underwriters for the Offering.