East West Banking Corp., the banking arm of the Gotianun-led Filinvest Group, plans to raise up to P9 billion through a stock rights offering to fund expansion across its lending, wealth management and digital businesses.
The bank’s board approved the proposed fundraising on Aug. 27, with major shareholders Filinvest Development Corp. (FDC) and FDC Ventures Inc. set to support the offering.
The issuance of common shares to eligible shareholders remains subject to regulatory approvals, including from the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange.
EastWest said the final offer size, entitlement ratio, offer price, record date and timetable would be announced after the necessary approvals are secured.
Proceeds will be used to support loan growth across key retail and business segments, expand the bank’s wealth and priority banking businesses and invest in digital technologies.
“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.
“The additional capital will support continued expansion across our core businesses and enhance our ability to pursue strategic opportunities in a fast-evolving financial landscape, while strengthening our balance sheet,” he added.
AB Capital & Investment Corp. was appointed issue manager and sole underwriter for the offering.
EastWest had total assets of P623.9 billion as of end-June, while its consumer loan portfolio stood at P337.6 billion.
