BDO Unibank : Press Release - BDO sets Final Terms for P60 billion Stock Rights Offer

Via EDGE

3 January 2017

PHILIPPINE STOCK EXCHANGE, INC.

Tower One and Exchange Plaza Ayala Triangle, Ayala Avenue Makati City

Attention: Ms. Janet A. Encarnacion

Head, Disclosure Department

Ms. Dianne Eileen A. Cenidoza

Analyst, Disclosure Department

PHILIPPINE DEALING & EXCHANGE CORP.

37th Floor, Tower 1, The Enterprise Center

6766 Ayala Ave., cor. Paseo de Roxas, Makati City

Attention: Ms. Vina Vanessa S. Salonga

Head, Issuer Compliance and Disclosure Department (ICDD)

Re: Press Release - BDO sets Final Terms for P60 billion Stock Rights Offer

=====================================================

Dear Ladies:

Please be informed that BDO Unibank, Inc. (BDO) is releasing to the press the attached statement regarding BDO's Php60 billion stock rights offer.

Thank you.

Very truly yours,

ELMER B. SERRANO

Corporate Information Officer

3 January 2017 BDO sets Final Terms for P60 billion Stock Rights Offer

BDO Unibank, Inc. ("BDO") announced that it has fixed the final terms for its P60 billion stock rights offering of up to 716.4 million common shares (the "Rights Shares") to stockholders as of record date 10 January 2017. Each eligible stockholder is entitled to subscribe to one (1) common share for every 5.095 common shares held as of record date at an offer price of PHP 83.75 per Rights Share. The offer price is based on the 15- day volume-weighted average price of BDO common shares listed at the PSE at a discount of 23.4%.

The stock rights offer will commence at 9:00 a.m. on 16 January 2017 and end at 12:00

p.m. on 24 January 2017.

The fresh capital will support the Bank's medium-term growth objectives amid the country's favorable macroeconomic prospects and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge.

BDO has appointed Credit Suisse, UBS and BDO Capital as Joint Global Coordinators and Bookrunners, with Citigroup, Goldman Sachs and HSBC as Joint Bookrunners. BDO Capital will serve as Issue Manager and Domestic Underwriter.

SM Investments Corp. (SMIC), BDO's controlling and majority shareholder has expressed its full support for the Bank's expansion plans and the proposed rights offer. SMIC commits to subscribe to its proportionate share and is willing to underwrite any shares not taken up by minority shareholders.

About BDO

BDO is a full-service universal bank which provides a wide range of corporate, commercial and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards and credit card services.

BDO has one of the largest distribution networks, with more than 1,100 operating branches and over 3,500 ATMs nationwide. It also has a branch in Hong Kong as well as 25 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of 30 September 2016. For more information, please visit www.bdo.com.ph

2