Philippine Largest Bank BDO UNIBANK sets ₱60 Billion Php ($1.2 Bln USD) Capital Build up

BDO sets P60B capital build-up

THE COUNTRY'S leading lender BDO Unibank is raising ₱60 Billion Pesos ($1.2 Billion USD) in fresh capital to support growth objectives in the following years and brace for higher capital requirements.

BDO's board approved the increase in additional capital through the sale of new shares to existing investors, the bank disclosed to the Philippine Stock Exchange on Monday.

"The fresh capital will support the bank's medium-term growth objectives amid the country's favorable macroeconomic prospects, and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the domestic systemically important bank (DSIB) surcharge," the bank said

The Bangko Sentral ng Pilipinas (BSP) has classified banks depending on the extent of their systemic importance using pre-defined indicators for size, interconnectedness, substitutability and market reliance as a financial market infrastructure as well as complexity. The DSIB framework is in line with the initiatives pursued under the globally-accepted Basel 3 reform agenda.

As of end-June, BDO said its consolidated CET1 ratio and capital adequacy ratio (CAR) of 11.3 percent and 13.1 percent, respectively, were above the current regulatory minimum levels, even with the gradual implementation of the DSIB surcharge.

The bank said the additional capital will allow it to sustain its momentum and take advantage of the country's growth opportunities. Over the past five years, BDO's customer loan portfolio grew at a 19 percent compounded annual growth rate (CAGR), outpacing the industry's 17 percent CAGR.

"Going forward, the bank hopes to further expand its presence in emerging growth areas particularly the consumer, provincial middle market and SMEs (small and medium enterprises) and the underserved segments, as well as in infrastructure-related lending/project finance in line with the government's thrust to promote countryside development and ramp up infrastructure spending," BDO said.

Sy family-led SM Investments Corp. (SMIC), the controlling and majority shareholder of BDO, has expressed its full support for the bank's expansion plans and the rights offer.

"SMIC commits to subscribe to its proportionate share and is willing to underwrite any shares not taken up by minority shareholders," the disclosure said. – Inquirer

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Globe tests TV white space frequency

Carlson TV white space technology

Globe Telecom recently completed a trial phase for the use of so-called TV white space frequency to efficiently provide broadband access to remote rural areas.

Emmanuel Estrada, senior vice president for network technologies strategy, said the frequency allowed the company to provide broadband access to certain areas where it was not commercially viable to deploy traditional broadband infrastructure.

“Once in place, the technology is expected to provide an alternative wireless network that will provide data connectivity in far flung areas in Visayas and Mindanao,” Globe said.

Estrada said the trials were in support of Globe’s bid “to maximize available spectrum” given rapid  rise in data consumption.

TV White Space refers to the unused television channels between the active ones in the VHF and UHF spectrum. These are referred to as the “buffer” channels and would be placed between active TV channels to protect broadcasting interference.

“It has since been researched and proven that this unused spectrum can be used to provide broadband internet access while operating with surrounding TV channels,” Globe said.

Globe said the trials were undertaken in partnership with the Information and Communications Technology Office of the Department of Science and Technology over the last eight months in several areas in the country. These included Cebu and Bohol.

The trial run was undertaken by Globe in partnership with Canada-based NuRAN Wireless Inc., supplier of mobile and broadband wireless solutions. NuRAN’s equipment generated up to 10 Mbps over distance of seven and 12 kilometers. – Inquirer

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