The international law firm Milbank, Tweed, Hadley & McCloy LLP has advised the joint bookrunners on a US$1.2 billion stock rights offering by BDO Unibank, Inc. (BDO).
Milbank advised BDO Capital, Credit Suisse, and UBS as joint global coordinators, together with Citigroup, Goldman Sachs and HSBC as joint bookrunners, on the PHP60 billion rights offer (the Offer) of common shares by BDO. The Offer represents a key milestone not only for BDO but also for the Philippines as its largest ever equity capital raise, executed amidst challenging global market conditions.
The Offer increased BDO’s Common Equity Tier 1 Capital, making it better positioned to fulfill its medium-term growth objectives and take advantage of the positive outlook on the Philippine economy. The transactions also provide BDO a comfortable buffer over higher capital requirements with the imposition of the Domestic Systemically Important Bank (DSIB) surcharge.
The Offer was fully subscribed and led by BDO’s major shareholder SM Investments Corporation and its affiliates, all principally owned by retail and banking magnate Henry Sy. The Offer also saw strong participation from the Bank’s domestic and international investors.
Milbank Capital Markets partner, James Grandolfo, commented: “we are delighted to have acted on this extremely important transaction for BDO, which comprised the largest ever equity raise out of the Philippines, a distinction previously held by BDO when it completed its initial stock rights offering in 2012. The transaction also demonstrates BDO’s commitment to continually strengthen its core capital ratios in accordance with evolving international standards. We are likewise delighted for Milbank to have played a part in signaling the continued prominence of BDO and the Philippines to international investors in 2017.”
The Milbank team was led from Hong Kong by partner James Grandolfo and counsel Paul Pery, with support from associates Adam Heyd and Ari Singzon.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that provides innovative legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
Milbank’s lawyers collaborate across practices and offices to help the world’s leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives.
