BDO raising US$250m in primary capital IFC and IFC Capitalization Fund to invest US$150M

[Manila, 19 April 2010] Banco De Oro Unibank Inc. ("BDO") announced that it will be undertaking an aggregate US$250 million primary capital raising to support the Bank’s growth and strengthen its position in the Philippine banking sector. It will be anchored by a US$150 million subscription by the International Finance Corporation (“IFC”) a member of the World Bank Group, and the IFC Capitalisation (Equity) Fund, L.P. and a targeted additional US$100 million “top-up equity placement” worth of common shares that will be offered to select institutional investors outside the Philippines, which is being launched today. The new capital will be used to support the Bank’s medium-term growth objectives and further reinforce its position in the Philippine banking industry. The IFC subscription is expected to close on 27 April 2010, subject to certain customary closing conditions.

The IFC, a member of the World Bank Group, and the IFC Capitalization Fund, founded by IFC and the Japan Bank for International Cooperation (“JBIC”), have agreed to invest an aggregate of US$150 million in newly issued common shares of BDO. IFC will invest US$22.5 million and the IFC Capitalization Fund will invest US$127.5 million.

This is the first IFC Capitalization Fund investment in Asia. The US$3 billion IFC Capitalization Fund is a global equity and subordinated debt fund that aims to support banks considered vital to the financial system of an emerging market country. By supporting systemically important institutions, the Fund aims to speed up economic recovery and boost job creation while reducing the impact of the financial crisis.

“IFC’s investment will support BDO’s stepped-up efforts to offer financing to small and medium-sized enterprises that form the backbone of the Philippine economy, helping to bolster the economic recovery and job security,” said Karin Finkelston, IFC Director for East Asia and the Pacific. “It will also support BDO in building its position in financing infrastructure development in the Philippines on a sustainable basis.”

The additional investment further strengthens the strategic partnership between IFC and BDO and expands the potential areas for collaboration in the areas of corporate governance, risk management and special lending to sectors such as renewable energy. With this investment, IFC is expected to nominate a representative to BDO’s Board of Directors.

UBS will act as Sole Bookrunner for the top-up placement, which is expected to close on 23 April 2010.

Both the IFC and the top-up equity placement transactions were priced at Php41.50 per share (“Offer Price”). The Offer Price was based on market, computed using the volume weighted average price of BDO shares on the PSE for the past 15 trading days, without any discount. To afford the investing public equal access to information, BDO has requested for a trading halt for one day. Trading in BDO shares will resume on Tuesday, April 20, 2010.

Upon the successful completion of the IFC and “top-up equity placement” transactions, based on its capitalisation as of 31 December 2009, BDO’s Tier 1 capital ratio is expected to increase from 8.4% to 10.0% and total capital ratio to increase from 12.4% to 14.0%.


About BDO

BDO is among the market leaders in the Philippine banking industry. It ranked first in terms of total resources, trust assets, loans and deposits while ranking second in terms of capital as of December 31, 2009. The Bank offers a complete array of products and services, serving the Retail and Institutional Markets, i.e., Lending (Corporate, Commercial, Consumer, and SME), Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage and Stock Brokerage services. For more information, visit


About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled US$14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit


About JBIC

Japan Bank for International Cooperation (JBIC) is the international wing of the Japan Finance Corporation (JFC), Japan’s policy-based financing institution established on October 1, 2008. It succeeded International Financial Operations of former JBIC and will continue to use the name of JBIC to maintain international trust and confidence it has gained. JBIC provides policy-based finance with a mission to contribute to the sound development of the Japanese and international economy, including finance responding to disruptions in financial order in the international economy. For more information, visit


NOT FOR DISTRIBUTION IN THE UNITED STATES: This press release is not an offer of securities for sale in the United States or elsewhere. The shares of BDO have not been and will not be registered under the US Securities Act of 1933, as amended (the Securities Act) and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the United States.