Allied Bank to convert $50-M notes into shares

MANILA, Philippines - Lucio Tan-led Allied Banking Corp. on Wednesday announced that it will be converting $50-million worth of notes into shares of the bank. In a statement to the Philippine Stock Exchange, Allied Bank said its stockholders approved the conversion of the notes into some 2.8 million common shares at P1,000 par value per share. The bank will also increase its authorized capital stock from P500 million to P11.5 billion divided into 11.5 million shares, of which 50,000 shares with a par value of P1,000 each are non-voting preferred shares and 11.45 million shares of the same par value are voting common shares. Last month, international ratings agency Moody's Investors Service said it will assign a Ba3 rating to the proposed issuance of peso-denominated notes by Allied Banking Corp. The step-up callable dated subordinated notes are due 2018. Moody's outlook for the papers is stable. Moody's said the ratings derive from the bank's strong niche in middle-market business financing and average financials. The ratings agency said the rating is also due to progress made in disposing of non-performing assets, and the recovery in profit growth. Allied Banking Corp. is the Philippines' 10th largest bank with P142 billion in assets as of end-2007. - GMANews.TV