JP Morgan to manage BPI's P10-B stock rights offer

Bank of the Philippine Islands, a unit of conglomerate Ayala Corp., plans to raise P10 billion from a stock rights offer, appointing JP Morgan (SEA) Ltd. to manage the issue. Its board of directors approved the plan, the bank said in a disclosure to the Philippine Stock Exchange Thursday. "The bank expects to complete the rights issue immediately after receiving the required regulatory approvals," BPI said. It has appointed JP Morgan (SEA) Ltd. as international lead manager and international lead underwriter, and BPI Capital Corp. as the domestic issue manager and domestic lead underwriter for the offering. The rights issue will be offered to shareholders, as part of the banks approach to grow and strengthen its businesses and core franchises, and solidify its capital adequacy and financial strength. The issue size, discount rate, offer price, and other terms of the offering are still being worked out, the bank said. BPI reported a net income of P2.7 billion in the first quarter, down from P2.8 billion a year earlier. Its total asset base, however, grew by 8 percent to P695 billion as deposits expanded by 8 percent to P558 billion, mainly from low-cost peso deposits. —VS, GMANews.TV