BPI loans out entire P10-B stock rights proceeds

BPI has loaned out the entire amount of its recently-raised P10 billion capital in its 2010 loan portfolio.

In a report, BPI executive vice president and treasurer Antonio V. Paner said that net proceeds of its stock rights offer worth US$224.7 million were fully disbursed in loans.

“As of Dec. 31, 2010, net loan portfolio increased by P57.1 billion from August 2010 level ofUS$5.05 billion to US$6.34 billion as of December 2010, ” he said.

In August last year, BPI successfully launched a stock rights offer which was over subscribed by P4.176 billion as applications exceeded the prescribed 307.7-million rights shares to 436 million.

The issuance of preferred shares is part of the five-year program designed to strengthen BPI’s leading position in the country’s banking industry.

BPI president and chief executive officer Aurelio Luis R. Montinola III said the funds from the stock rights offer could, among others, be used “to take advantage of any opportunity,” as well as “possible capital regulatory requirements as a result of the Basel II and III framework.”