Eastwest To Raise Php8 Billion In Core Capital

EastWest Banking Corporation (EW) announced that its Board of Directors has approved a program to raise additional common equity tier-1 capital by as much as Php8 billion through a rights offer. This is intended to support the Bank’s medium-term growth plans.

The new capital will provide sufficient cushion on top of the capital levels required under Basel III and allow EW to continue its growth momentum.

The Bank has a positive outlook on the Philippine economy and looks to continue with its growth trajectory driven mainly by the consumer and middle market corporate sectors.

The approximately 1:3 rights offer will allow all shareholders to proportionally participate in the capital raising program. Filinvest Development Corporation (FDC), the majority shareholder of EW, has expressed their support for the Bank’s expansion plans and the proposed rights offer. FDC has committed to subscribe to its proportionate share and will consider underwriting the shares not taken up by the minority shareholders.

EW President & CEO Tony C. Moncupa Jr. said “We have completed Phase1 of our expansion with the completion of the 405 consolidated branch stores from 123 in 2012. We now proceed to Phase 2 that will focus in serving more customers, booking more business, and expanding our balance sheet. This capital raising exercise is the fuel for this next expansion.”

EW CFO Rene K. De Borja Jr. said “We remain bullish on the economic prospects of the country and we intend to ride on the country’s growth momentum. We want to be in a good position to respond to the increasing banking needs of our customers. We need this additional capital to make this happen.”