BPI FAMILY SAVINGS Bank (BFSB) is asking for the consent of its bondholders to allow the Bank of the Philippine Islands (BPI) to take over the obligations of their papers after the lenders merge.
The consent solicitation period for BFSB holders FiThe xed rate bonds will run from July 13 to August 24, which could change at the discretion of the savings bank, its parent company BPI said in a statement. Filing Tuesday.
“The merger will not change the interest rate or the maturity date of the bonds. Once the merger is effective, BPI will assume the obligations of the issuer under obligations such as payment of interest and principal on the due date, ”the listed bank said.
Consent forms can be submitted to the Land Bank of the Philippines (LANDBANK) Trust Banking Group or BPI Capital Corp. through the BPI or BFSB branches until August 24 at noon.
LANDBANK’s Trust Banking Group is the consent solicitation advisor for BFSB while BPI Capital is the process trustee.
Bondholders will be notified of the terms and conditions and will receive the forms and requirements for soliciting consent through a kit that will be distributed July 13-30, BPI said.
BFSB will pay consenting bondholders who have met the applicable consent fee of 1P1 per 1,000P of the principal amount of the bonds they have purchased.
The BFSB raised 9.6 billion pesos from its first bond issue in December 2019. Newspapers have a Fifixed rate of 4.3% per annum paid quarterly.
The plan to merge Ayala-led lenders with BPI as the surviving entity was announced in January.
The merger will take effect once the Securities and Exchange Commission issues a certificate.Fimerger date or by Jan. 1, 2022, whichever is later, BPI said.
BPI said last week it had obtained central bank approval to increase its registered capital to 50.6 billion pesos before the merger took effect.
“We believe this merger will result in savings on operating expenses given the consolidation of branches and marketing support, reduced tax leakage from B2B services, and streamlined compliance and reporting requirements.” BFSB President Ma Cristina L. Go said Monday evening in a statement.
BFSB’s assets stood at 286.2 billion pesos at the end of 2020, based on central bank data. Its loan portfolio is primarily focused on the housing and automotive sector.
Meanwhile, its parent company BPI’s net profit fell 21.64% to P5 billion in the first quarter from P 6.381 billion a year earlier. This was caused by declining income against a backdrop of declining net interest income.
BPI shares closed at P89 each on Tuesday, down 40 centavos or 0.45% from its previous Fiend. – LWT Noble