PBB gets SEC nod to hike capital

MANILA, Philippines — Philippine Business Bank (PBB) has secured the approval of the Securities and Exchange Commission (SEC) for an increase in its authorized capital to P15 billion.

In a disclosure to the local bourse, the country’s second largest thrift bank said the SEC gave approved PBB’s amended articles of incorporation.

This means that the SEC approved the increase in capital to P15 billion from the current P10 billion or an additional P5 billion.

The corporate regulator approved the increase in the number of common shares to 1.37 billion from 870 million, with a par value of P10 per share.

The capital base also consists of 130 million preferred shares, with a par value of P10 per share.

PBB, owned by the family of businessman Alfredo Yao, said the increase in authorized capital stock is in preparation for the continuing expansion of its core deposit-and-lending business.

“An expanded capital base will allow the bank to grow its risk assets and provide financing to its clients,” PBB said.

According to the mid-sized bank, the change of the preferred shares feature from perpetual to convertible allows participating preferred shareholders to convert their preferred shares to common shares.

Converting the preferred shares to common shares will also lower the bank’s financing costs.

“A strong capital base will help the bank sustain its business, prepare for future growth, maximize returns, and mitigate strategic risks,” PBB said.

PBB was incorporated in the Philippines in 1997 to engage in the business of thrift banking.

It provides banking services and products including cash management, retail and corporate lending, deposit products, international trade finance, and treasury and trust products.

Since 2014, PBB has entered into three purchase agreements involving Rural Bank of Kawit, Bataan Savings and Loan Bank, and Insular Savings Bank.