Bank of the Philippine Islands has set the price of its P10-billion stock rights offer at P32.50 per share at the rate of one rights share for every 10.555 common shares held as of August 5, 2010.

In a disclosure to the Philippine Stock Exchange, the bank said its Executive Committee approved the offer terms as recommended by the BPI management.

The offer price represents about 30.5 percent discount to closing market price of BPI last July 28 at P46.75. It rose to P47.25 Thursday.

Ayala Corporation has committed to subscribe to its share in the stock rights offering. The firm said its board of directors has approved the subscription to its pro-rata share in the stock offer.

BPI said the pre-emptive rights offering is meant to raise cash to fund the growth and strengthening of its market-leading businesses and core franchises. The fresh funds will also further solidify its industry-leading capital adequacy and financial strength.

“The bank expects to complete the rights issue immediately after receiving the required regulatory approvals,” said BPI corporate secretary Carlos Aquino.

BPI said the Philippine banking sector presents significant growth opportunities in the short to medium term and it is preparing to seize these opportunities.

This will be achieved by increasing loans and other credit products, deepening and expanding customer relationships while developing new business segments, broadening products and services offered to BPI’s growing customer base, and evaluating and pursuing any organic growth opportunities as they arise.