• By The Financial District

Union Bank Bares Completion of Stock Rights Offering Worth ₱40B

Union Bank of the Philippines (PSE: “UBP” or the “Bank”) has announced the successful completion of its ₱40 BILLION Stock Rights Offering (“SRO” or the “Offer”) that was well-received by existing institutional and retail investors.

Photo Insert: The newly issued shares were listed on the Philippine Stock Exchange (“PSE”) on 16 May 2022.

The Bank issued approximately 617.2 million common shares priced at ₱64.81 per share. The shares were offered to eligible shareholders as of the record date of 11 April 2022 at a ratio of 1 rights share for every 2.4707 existing common shares.

The newly issued shares were listed on the Philippine Stock Exchange (“PSE”) on 16 May 2022.

The SRO garnered strong participation from UBP’s existing investors, led by principal shareholders Aboitiz Equity Ventures, Social Security System, and Insular Life Assurance Company Ltd.

The Offer was almost completely subscribed after the first round with the remaining shares distributed to UBP’s shareholders that expressed interest in additional subscriptions. The SRO was heavily oversubscribed at the end of the offer period.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Proceeds from the SRO will be deployed to partially fund the acquisition of Citigroup, Inc.’s Philippine consumer business. The acquisition is a transformational transaction for UBP as it leapfrogs the Bank’s credit card portfolio and delivers a high-quality consumer and wealth management customer base.

The transaction is currently awaiting regulatory approvals.

Business: Business men in suite and tie in a work meeting in the office located in the financial district.

“Despite the challenging and volatile markets, our SRO was oversubscribed. This is testament to the invaluable support of our shareholders to our vision and strategy,” said Edwin R. Bautista, President and CEO.

“We are confident that with the same level of shareholder support, we will continue to execute our strategic initiatives and create superior shareholder value.”

Banking & finance: Business man in suit and tie working on his laptop and holding his mobile phone in the office located in the financial district.

UBP operates a network of 384 branches and offices across the Philippines, and generates a consistent above-industry Return on Equity, and Return on Assets. The Bank continues to strengthen its position as the Philippines’ premier digital bank leveraging on technological innovations and its agile culture to meet dynamic customer preferences and requirements.

CLSA Exchange Capital, Inc., and ING Bank N.V., Manila Branch acted as Joint Global Coordinators, and Joint Domestic Underwriters for the Offering.

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