Filinvest Development Corp. (FDC) is prepared to absorb shares left unsold in East West Banking Corp.'s planned P9-billion stock rights offering to preserve its stake and support the bank’s expansion.

In a disclosure on Thursday, FDC said its board authorized the group to subscribe not only to its entitlement under the rights offer but also to additional shares that may become available.

FDC and FDC Ventures Inc. will subscribe to their respective entitlement shares and simultaneously apply for additional rights shares.

Any shares that remain unsubscribed may then be taken up by Filinvest Infra-Solution Ventures Inc., a wholly owned subsidiary of FDC, or another wholly owned unit designated by management.

“The foregoing is intended to support EW, enable the FDC Group to maintain its ownership interest in EW, and ensure the success of the SRO,” FDC said.

The arrangement gives EastWest additional support for its capital-raising exercise, with the Filinvest Group positioning itself to take shares that other eligible shareholders may not subscribe to.

FDC did not disclose how much it could ultimately invest, as the final terms of the offering have yet to be set.

EastWest plans to raise about P9 billion by issuing common shares to eligible shareholders.

The proposed stock rights offering was approved by EastWest’s board on Aug. 27 and will be backed by its major shareholders, FDC and FDC Ventures.

EastWest plans to use the fresh capital to fund its next phase of growth, including expanding its wealth and priority banking businesses, investing in digital technologies and supporting loan growth across key retail and business segments.

“This proposed rights offering positions EastWest for its next phase of growth while allowing our existing shareholders to participate in the Bank's long-term value creation,” EastWest Chief Executive Officer Jerry G. Ngo said.

“The additional capital will support continued expansion across our core businesses and enhance our ability to pursue strategic opportunities in a fast-evolving financial landscape, while strengthening our balance sheet,” he added.

EastWest is the banking arm of the Filinvest Group and one of the country’s major consumer-focused banks.

As of June, the bank had P623.9 billion in total assets and a P337.6-billion consumer loan portfolio, one of the largest in the Philippine banking industry.

The proposed offering remains subject to regulatory approvals, including those of the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange.

The final offer size, entitlement ratio, offer price, record date, and timetable will be determined and announced after the necessary approvals are secured.

FDC’s participation likewise remains subject to the final structure and terms of the rights offering. Its board authorized management to finalize the structure and terms of the group’s participation and execute the necessary agreements and documents.

AB Capital & Investment Corp. has been tapped as issue manager and sole underwriter for the offering.