EastWest sets P9-billion capital raising push
East West Banking Corp. is looking to raise about P9 billion through a stock rights offering (SRO) as the Gotianun-led bank seeks fresh capital to fund the next phase of its expansion.
In a regulatory filing on Thursday, EastWest said its board approved the proposed SRO on Aug. 27. The transaction will involve the issuance of common shares to eligible shareholders.
Major shareholders Filinvest Development Corp. (FDC) and FDC Ventures Inc. will back the fundraising exercise.
EastWest said proceeds would support its strategic growth objectives and future expansion plans.
These include scaling up its wealth and priority banking propositions, investing in transformative digital technologies and funding loan growth across key retail and business segments.
“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 CEO Jerry Ngo said.
Ngo also said the additional capital would allow the bank to expand its core businesses, pursue strategic opportunities and strengthen its balance sheet.
The proposed SRO remains subject to regulatory approvals, including those of the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange.
EastWest has yet to finalize the offer size, entitlement ratio, offer price, record date and timetable. These will be announced after the bank secures the necessary approvals.
The bank had total assets of P623.9 billion as of end-June. Its consumer loan portfolio stood at P337.6 billion, making it one of the largest in the Philippine banking industry.
EastWest, the banking arm of the Filinvest Group, has tapped AB Capital & Investment Corp. as issue manager and sole underwriter for the proposed issuance.
