Manila's Banco de Oro plans to raise $345mn Tier 2 capital

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MANILA: Banco de Oro Unibank, the Philippines' largest lender in asset size, said on Monday it had obtained central bank approval to issue up to 15 billion pesos ($345 million) in unsecured subordinated notes to raise lower Tier 2 capital.

In a stock exchange disclosure, the bank confirmed a report in the Manila Bulletin about the regulatory approval, but said it had yet to fix the terms and issue dates.

The newspaper, citing a source, said Banco de Oro was looking to issue 10-year debt, with a call option after five years, to fund expansion plans and boost its capital.

"Issuance will be programmed over a 1-year period subject to final terms and the requirements of BDO," the bank said.