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Tuesday, April 15, 2014

EastWest Bank to issue 500-M preferred shares to meet Basel III capital requirement

EastWest Banking Corp. is going to offer up to 500 million preferred shares and use the proceeds to boost its capital to meet Basel III requirements.

The board of directors approved the plan last Thursday, the bank said in a disclosure to the Philippine Stock Exchange Monday

“ [The board] authorized the bank to issue and list up to a maximum of 500,000,000 perpetual non-cumulative Tier 1 preferred shares at par value of P10.00 per share, that would qualify as additional Tier 1 capital of the bank under Basel 3 regulations,” the bank said.

As of end-December 2013, EastWest registered a  17 percent capital adequacy ration and a 13.8 percent Tier 1 ratio.

EastWest was also tasked by the board bank to create a wholly-owned finance and leasing company.

What the board approved will be presented for ratification by shareholders during the annual stockholders’ meeting on April 25, the bank said.

Basel III is a set of reforms forged by global banking regulators in light of the global financial crisis, to strengthen the industry, principally in terms of capitalization.

Source: GMA News

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