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PDIC to re-bid Export and Industry Bank on March 20

The Philippine Deposit Insurance Corporation (PDIC) announced the conduct of the re-bidding for the rehabilitation of the closed Export and Industry Bank (EIB) on March 20, 2013. The re-bidding will be held at the Penthouse, SSS Bldg., 6782 Ayala Avenue, Makati City. The Bidding Committee, tasked to oversee and conduct the bidding process, will receive bids from 9:00 AM to 11:00 AM only. Bids will be opened immediately after. The Terms and Conditions for Re-bidding and Procedure for the Rehabilitation of the Closed Export and Industry Bank are posted in the PDIC website, www.pdic.gov.ph.

The subject of the bid shall be the rehabilitation of EIB via purchase of assets and assumption of liabilities of EIB.

The bidding will be limited to strategic third party investors (STPIs) which qualified for the bidding conducted by the PDIC last October 18, 2012.

The bids from the STPIs represent the amount the qualified bidders will pay for the uninsured deposits and other ordinary credits of EIB. STPIs who intend to participate in the re-bidding are required to submit a rehabilitation plan that complies with the requirements for capital strengthening, liquidity, sustainability and viability; and governance. The repayment terms proposed by the STPI must also be indicated. The PDIC Board will set the Reserve Price for the bidding.

The Bidding Committee will determine the Highest Bid among the complying bids. The highest bid is the amount which is either equal to or exceeds the Reserve Price and which will provide the highest recovery to EIB’s depositors and creditors. For purposes of determining the highest bid, the present value of the bid will be computed using a discount rate of 5%.

According to PDIC, 56% of uninsured depositors and creditors, accounting for 67% of total ordinary credits have given their consent to the rehabilitation of EIB. PDIC conducted a series of meetings with depositors and creditors nationwide to provide updates on the rehabilitation and to discuss the importance of the consents to the rehabilitation of EIB until February 2013.

The successful rehabilitation of EIB is subject to the final approval of the Monetary Board and the fulfillment of all other legal and regulatory requirements.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing permanent and continuing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.

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