EastWest Bank's Lower Tier 2 Public Offering

EastWest Bank launched its first ever public offering with an issuance of up to P1,250,000,000 of Unsecured Subordinated Notes due 2019, callable with a step-up interest rate in 2014. The Hongkong and Shanghai Banking Corporation (HSBC) is the Lead Manager, Sole Bookrunner, and Selling Agent of the bond float, with UniCapital, Inc. and Multinational Investment Bancorporation as other Selling Agents.

The Bank intends to use the proceeds to shore up capital, where its total capital adequacy ratio, a measure of the Bank's ability to absorb losses, stands at 15.35% as of 31 December 2007, well above the BSP requirement of 10% for commercial banks.

The offer period of the Notes began on 8 July and ended on 18 July, with the sole discretion of the Lead Manager or HSBC, in consultation with the Issuer, to shorten the offer period. The public offering is one of a series of issuances in the capital markets the Bank intends to do in the coming years. The Tier 2 issuance puts EastWest Bank among the ranks of its larger industry peers, taking advantage of opportunities in the capital markets, and making available enough capital for the Bank to pursue expansion and growth plans.

The Lower Tier 2 Capital issuance was managed from the Issuer's side by EVP Ricky Cebrero, our Treasurer, Jun de Guzman, Nina Virata, and Miguel Florescio of the Derivatives and Structured Products Desk of Treasury, and Grace Ang of the Strategic Management Division. The team was guided and advised by the Lead Manager with Lynette Ortiz and Kristine Ou of HSBC. The Notes were marketed and distributed by the Bank through the Distribution Group, headed by SVP Oslec Lopez, together with the Branch Banking Group, headed by EVP Gerry Susmerano, where the Bank is able to garner overwhelming interest from public investors. The logistics and other preparations were done by Judy Capili of the HR-Training and Organization Division, while Fely Cacho and Angie Lagman, with the Accounting Division, helped furnish the financial disclosures investors will use in deciding on investing in the Notes. Ed Isagon of Risk Management and Compliance also significantly assisted in our information disclosures.

The entire team is very appreciative of the support and effort that everyone has extended during the preparation, launch and execution of the issue. This landmark achievement paves the way for more innovative and groundbreaking capital market issuances to come.