Vol. XXII, No. 127 [ BusinessWorld Online ]
Thursday, January 29, 2009 | MANILA, PHILIPPINES
GOTIANUN-LED Filinvest Development Corp. (FDC) is infusing additional funds into subsidiary EastWest Banking Corp. in line with the family’s goal of expanding its banking business.
In a disclosure yesterday, Filinvest said it is investing P1.2 billion, while another subsidiary, FDC Forex, is investing P800 million into EastWest Bank.
Filinvest is the listed holding company of the Filinvest Group founded by Andrew L. Gotianun, Sr. in 1955.
Filinvest said it will subscribe to 120 million preferred shares, subject to regulatory approvals.
The preferred shares will constitute Tier 1 of the capital of the bank and are perpetual, non-cumulative, non-voting and convertible to common shares at the stockholders’ option.
FDC Forex, on the other hand, will subscribe to 80 million shares.
EastWest last week bagged Philam Savings Bank, and two other related businesses — Philam Auto Finance and PFL Holdings Inc. — creating a bank that now has combined assets of P63 billion.
The Gotianun family is gunning to make EastWest Bank a leader in the banking industry. The bank has said the infusion of the P2 billion in fresh capital would give it the "elbow room to take advantage of any opportunity that may arise."
EastWest is seeking approval from regulators to raise its authorized capital to P8 billion from the current P5 billion to accommodate the fresh equity infusion. — K. J. R. Liu