The proposed stock rights offer, approved by the bank’s board on Aug. 27, will be backed by major shareholders Filinvest Development Corp. and FDC Ventures Inc.
“This proposed rights offering positions EastWest for its next phase of growth while giving our existing shareholders the opportunity to participate in the bank’s long-term value creation,” EastWest president and CEO Jerry G. Ngo said in a statement on Thursday.
Wealth, digital push
Proceeds will be used to expand the lender’s wealth and priority banking businesses, invest in digital technology and support loan growth across key retail and business segments.
“The additional capital will support continued expansion across our core businesses and enhance our ability to pursue strategic opportunities in a fast-evolving financial landscape, while strengthening our balance sheet,” Ngo added.
EastWest had P623.9 billion in total assets as of end-June, including a P337.6-billion consumer loan portfolio—one of the largest in the Philippine banking industry.
Key terms still pending
The fundraising plan remains subject to approvals from the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange.
The final offer size, entitlement ratio, price, record date and timetable have yet to be determined.
EastWest tapped AB Capital & Investment Corp. as issue manager and sole underwriter.
—Edited by Miguel R. Camus
