BDO Unibank, Inc. (BDO), has disclosed plans to increase the capital position of its rural banking arm BDO Network Bank (BDONB), by up to P2.0 billion, to be funded through the issuance of primary common shares.
The capital increase will allow BDONB to support the sustained expansion in its salary loan and micro small & medium enterprises (MSME) portfolios, which have a compounded annual growth rate (CAGR) of 28% over the last 3 years to P37 billion. Further, this will enhance BDONB’s ability to cover and serve more markets, particularly the unbanked and the underserved segments of the population.
BDONB’s major shareholders, BDO, with an 85% stake, and Osmanthus Investment Holdings Pte. Ltd, with a 15% stake, have committed to participate in the capital-raising activity up to their proportionate shares. The capital plan will be implemented through periodic subscriptions of primary common shares up to P2.0 billion.
The capital-raising plan will be subject to regulatory approvals.
While BDONB has experienced strong growth in recent years, there is no guaranty that BDONB will be able to continue with a similar growth trajectory.
BDO has the country’s largest distribution network, with over 1,500 consolidated operating branches and more than 4,400 ATMs nationwide. It also has 16 international offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America and the Middle East.
The Bank also offers digital banking solutions to make banking easier, faster, and more secure for its clients.
BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of December 31, 2021. For more information, please visit www.bdo.com.ph.
BDO is regulated by the Bangko Sentral ng Pilipinas with contact number (+632) 8708-7087 and with email address email@example.com, and webchat at www.bsp.gov.ph.
For concerns, please visit any BDO branch nearest you, or contact us thru our 24x7 hotline (+632) 8631-8000 or email us via firstname.lastname@example.org.
About BDO Network Bank
BDO Network Bank (BDONB), the rural bank subsidiary of BDO Unibank, Inc., provides a wide range of bank products and services, including loans, deposits, remittances, bills payments, and other banking services through its network of more than 300 branches and loan offices, and over 300 Automated Teller Machines (ATMs) nationwide. BDONB remains steadfast in its commitment to serve its customers with simple, quick, accessible, relevant, convenient, and affordable financially-inclusive solutions.
About Osmanthus Investment Holdings Pte. Ltd.
Osmanthus Investment Holdings Pte. Ltd. is a unit of Singapore-based private equity firm Archipelago Capital Partners Pte. Ltd. that focuses on growth opportunities and high-potential small and middle market businesses, especially in the consumer, financial services and niche industrial sectors in Southeast Asia. Osmanthus holds a 15% stake in BDO Network Bank (BDO NB) and has helped in the development of BDONB’s framework for micro, small, and medium-sized (MSME) businesses.
Aiming for the betterment of any small businesses!ReplyDelete
Wow! That's great news..The best talaga ang BDO.. always find ways to help Filipino peopleReplyDelete