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Keisha Ta-Asan - The Philippine Star
May 30, 2026 | 12:00am
Stock photo of a peso money bill.
Philstar.com / Jovannie Lambayan
MANILA, Philippines — Citystate Savings Bank Inc. (CSBank) is raising P152.9 million in fresh capital from existing shareholders to support its lending operations and strengthen its financial position.
In a disclosure to the Philippine Stock Exchange, CSBank said its board approved the increase in its private placement to P152.9 million from the P101.93 million approved in March.
This means the bank will issue nine million common shares, up from the six million shares previously approved, at the same price of P16.9888 apiece.
“As previously disclosed, the additional issuance of shares is primarily undertaken to bolster the paid-in capital of the bank,” CSBank said.
Paid-in capital refers to money that shareholders invest in a company in exchange for shares. For banks, a stronger capital base helps support lending operations, absorb potential losses and meet regulatory requirements.
The nine million shares are equivalent to about 5.5 percent of CSBank’s existing 164.87 million outstanding common shares.
A private placement allows a company to sell shares directly to selected investors instead of offering them to the broader public.
Based on the filing, ALC Holdings and Management Corp. will take up 6.63 million shares worth P112.64 million, representing nearly three-fourths of the total private placement.
CS Capital Investment Pte. Ltd. will subscribe to the remaining 2.37 million shares worth P40.26 million.
The participation of CS Capital is significant as it comes after Citystate earlier announced the entry of the Singapore-based firm as a strategic investor in the thrift bank.
CS Capital is a wholly-owned subsidiary of Hong Kong-listed CSC Holdings Ltd. It earlier agreed to buy shares equivalent to 26.3 percent of Citystate’s capital stock for P736.7 million.
Citystate Savings Bank is the thrift bank subsidiary of Union Bank of the Philippines and a member of the Aboitiz Group. Founded in 1965 by Don Ramon Aboitiz and Teotimo Abellana, it currently has more than 140 branches nationwide.
