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Bulk of BPI SRO proceeds used for loans

bulk of bpi sro proceeds used for loans - Bulk of BPI SRO proceeds used for loans
BPI 2 e1563187641490 - Bulk of BPI SRO proceeds used for loans

BANK OF THE Philippine Islands (BPI) has deployed P49.5 billion in funds it raised last year via stock rights offer (SRO), allotting the bulk to loans.

In a disclosure to the local bourse on Monday, the Ayala-led bank said that as of end-December, it has used P49.5 billion of the net proceeds from its SRO concluded in May 2018.

Broken down, bulk of the proceeds or P23.2 billion was used for corporate loans, while P14.1 billion funded consumer loans.

On the other hand, P10.4 billion was used to pay down high-cost time deposits, while P1.8 billion was allotted for capital expenditures.

“The settlements of time deposits amounting to P10.4 billion…were for the period from May 4, 2018 to June 30, 2018,” a document posted by the bank read.

BPI listed 599.7 million new common shares at the local bourse following the completion of its P50-billion SRO.

The new shares were priced at P89.50 apiece.

The fund-raising activity, which was conducted from April 16-25 last year, was met with strong support from the bank’s domestic and foreign shareholders, resulting in an oversubscription of 22.3% as of the close of the offer.

BPI earlier said the fresh capital raised from the rights offer will be used to focus on “four strategic priorities” in the coming years — digitalization, deposit franchise and delivery infrastructure, small and medium enterprise and retail business and financial inclusion.

The bank booked a P6.72-billion net income in the first quarter, up 7.6% year-on-year, driven by robust net interest income growth.

Shares in BPI closed at P83.90 apiece on Monday, up 3.52% or P2.85 from the previous close. — K.A.N. Vidal

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