Jan. 10 (Bloomberg) -- Bank of the Philippine Islands, the nation’s third-largest lender by assets, fell to a three-week low in Manila stock trading after pricing a 25 billion peso ($559 million) rights offer at a 22 percent discount.
BPI, as the lender is known, slumped 2.2 percent to 84.30 pesos at the close of trading, the lowest level since Dec. 20. The bank will sell up to 370.4 million new shares at 67.50 pesos a share, it said in an exchange filing today, compared with its closing price of 86.15 pesos yesterday.
Proceeds from the offering will help expand lending and operations, and strengthen capital under stricter Basel III requirements, BPI said in a Nov. 6 filing. Bigger rival BDO Unibank Inc. raised the equivalent of $1 billion from a rights offer in June 2012.
Philippine National Bank shares sank 3.1 percent to 80.9 pesos, the biggest drop since Nov. 22. The bank priced its own rights offer at 71 pesos, it said in a separate disclosure, a 15 percent discount to its close yesterday.
Philippine National will offer 162.9 million new shares starting on Jan. 27, with stockholders entitled to 15 new shares for 100 shares held, according to the disclosure. BPI will sell its shares from Jan. 20 with an entitlement ratio of one share for every 9.6 held by stockholders, it said.
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