Exportbank

Exportbank, formally known as Export and Industry Bank and commonly abbreviated as EIB, was a Philippine commercial bank established in January 1997 by Hong Kong-based Lippo Group. It operated in the Philippine banking sector until 2012, when the Bangko Sentral ng Pilipinas closed the institution on insolvency grounds and the Philippine Deposit Insurance Corporation placed it under receivership. The bank expanded through acquisitions and an affiliated-company structure. Its most significant transaction was the 2001 acquisition of Urban Bank, a Philippine bank that had previously been closed by the central bank. Exportbank also operated or was associated with a number of financial and non-financial entities, including EIB Savings Bank, EIB Securities, EIB Realty Developers, and ValuGen Financial Insurance Company. Earlier affiliates included Urban Building Technologies, Urbancorp Insurance Brokers, Urbancorp Realty Holdings, Urbancorp Technologies Corporation, and ValueFinance. In the period before its closure, Exportbank became the subject of a proposed rehabilitation and investment arrangement involving Banco de Oro Universal Bank, commonly known as BDO. That arrangement did not proceed, reportedly because unresolved legal matters prevented the transaction from being completed. The bank was subsequently closed on April 27, 2012, with the central bank citing insolvency. Reference material describes liabilities of approximately PHP700 million to PHP800 million in connection with the bank's failure. The bank's resolution continued after closure. Exportbank had approximately PHP10.7 billion in uninsured deposits, and a substantial group of uninsured depositors organized as the Coalition of EIB Uninsured Depositors to support rehabilitation rather than immediate liquidation. The group represented depositors whose combined holdings were reported at approximately PHP8.2 billion. Union Bank of the Philippines later acquired the remains of Exportbank in March 2014. A proposed restructuring associated with Union Bank contemplated converting PHP150,000 of every PHP1 million in deposits into equity in Union Bank, while converting the remaining 85 percent into negotiable notes bearing one percent annual interest. The notes were intended to be tradable or usable as collateral. Exportbank is therefore best understood as a defunct Philippine banking brand whose history includes foreign-backed formation, expansion through the acquisition of Urban Bank, a failed rehabilitation effort, regulatory closure, depositor-led restructuring advocacy, and eventual acquisition of its remaining assets or interests by Union Bank of the Philippines.

Export and Industry Bank was established in January 1997 in the Philippines under the sponsorship of Lippo Group, a Hong Kong-based business group. It entered the Philippine commercial-banking market with a broader financial-services orientation, later maintaining or affiliating with businesses in savings banking, securities, insurance, real estate, and related services. The institution pursued growth partly through acquisition. In 2001 it acquired Urban Bank after that bank had failed and been closed by the Bangko Sentral ng Pilipinas. The transaction added Urban Bank-related operations and contributed to the development of an extended corporate network around Exportbank. Entities associated with the group included EIB Realty Developers, EIB Savings Bank, EIB Securities, and ValuGen Financial Insurance Company. Earlier or former affiliates included Urban Building Technologies, Urbancorp Insurance Brokers, Urbancorp Realty Holdings, Urbancorp Technologies Corporation, and ValueFinance. Exportbank later encountered financial and legal difficulties. A rehabilitation arrangement involving Banco de Oro Universal Bank was proposed, but the transaction did not reach completion because pending legal matters stood in the way. The failure of that arrangement left the bank exposed to continued resolution pressure. Reference material places the bank's liabilities at approximately PHP700 million to PHP800 million. On April 27, 2012, the Bangko Sentral ng Pilipinas closed Exportbank on the ground that it was insolvent. The Philippine Deposit Insurance Corporation then placed the institution under receivership. The closure generated a substantial problem for uninsured depositors. Exportbank was reported to have approximately PHP10.7 billion in uninsured deposits, while depositors holding a combined approximately PHP8.2 billion reportedly granted special powers of attorney to the Coalition of EIB Uninsured Depositors. That group sought rehabilitation of the bank rather than liquidation. Union Bank of the Philippines subsequently emerged as a prospective strategic investor and in March 2014 bought the remains of Exportbank. The proposed treatment of deposits associated with Union Bank's involvement contemplated converting PHP150,000 of each PHP1 million in deposits into equity in the publicly listed Union Bank, Inc. The remaining 85 percent would be converted into negotiable notes carrying one percent annual interest, with the notes designed to be tradable or usable as collateral. Exportbank's operating life consequently followed a pattern of formation, expansion, acquisition-led diversification, financial distress, regulatory intervention, and post-closure resolution. The brand is now defunct, and its historical significance lies primarily in its role in Philippine banking consolidation and in the depositor and regulatory issues surrounding its insolvency.

1. 2014Union Bank acquisition

   Union Bank of the Philippines buys the remains of Exportbank.

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2. 2012Regulatory closure and receivership

   The Bangko Sentral ng Pilipinas closes Exportbank for insolvency on April 27, and the Philippine Deposit Insurance Corporation places it under receivership.

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3. 2001Urban Bank acquisition

   Exportbank acquires Urban Bank after Urban Bank is closed by the Bangko Sentral ng Pilipinas.

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4. 1997Export and Industry Bank is established

   Lippo Group forms Export and Industry Bank in the Philippines; the institution becomes commonly known as Exportbank or EIB.

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A Philippine commercial banking group with affiliated savings-bank, securities, insurance, and property businesses.

• Export and Industry BankCommercial banking1997

  The core commercial-bank business operated under the Export and Industry Bank name and the Exportbank abbreviation. It formed the principal banking platform of the group in the Philippines before its closure by the central bank in 2012.

• EIB Savings BankSavings banking

  EIB Savings Bank was an affiliated savings-bank business within the wider Exportbank group. Available reference material identifies the entity but does not provide a detailed product catalogue or operating history.

• EIB SecuritiesSecurities services

  EIB Securities was an affiliated securities business associated with Exportbank. The available material does not specify its individual services or customer segments.

• ValuGen Financial Insurance CompanyInsurance

  ValuGen Financial Insurance Company was listed as an Exportbank subsidiary or affiliate, extending the group's presence beyond banking. Specific insurance products are not identified in the available reference material.

• 2014Union Bank acquisition and proposed depositor restructuringM&A

  Following closure and receivership, Union Bank of the Philippines became a prospective strategic investor, with support from uninsured depositors seeking an alternative to liquidation.

  What changed. Union Bank bought the remains of Exportbank and proposed converting part of deposit claims into Union Bank equity and the balance into interest-bearing negotiable notes.

  Aftermath. The proposed structure contemplated PHP150,000 of each PHP1 million in deposits becoming equity, with the remaining 85 percent represented by notes bearing one percent annual interest.

  Proposed deposit conversion. Depositor claims against Exportbank → PHP150,000 per PHP1 million converted to equity; remaining 85 percent converted to negotiable notes at one percent annual interest (2014 acquisition and proposed resolution structure)

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• 2012Rehabilitation proposal involving Banco de OroStrategy

  Exportbank faced financial distress and pending legal matters while a rehabilitation arrangement with Banco de Oro Universal Bank was being considered.

  What changed. The proposed rehabilitation deal was pursued but ultimately did not proceed because the legal issues prevented completion.

  Aftermath. Exportbank was later closed by the Bangko Sentral ng Pilipinas and placed under receivership.

  Reported liabilities. Approximately PHP700 million to PHP800 million (At or around the 2012 insolvency resolution)

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• 2012Regulatory closure for insolvencyOther

  The Bangko Sentral ng Pilipinas determined that Exportbank was insolvent after the proposed rehabilitation arrangement failed to materialize.

  What changed. The central bank closed Exportbank on April 27, 2012, and the Philippine Deposit Insurance Corporation assumed receivership.

  Aftermath. Uninsured depositors organized to seek rehabilitation, while the bank entered a prolonged resolution process.

  Uninsured deposits. Approximately PHP10.7 billion (At the time of the 2012 closure and subsequent resolution)

  Source
• 2001Acquisition of Urban BankM&A

  Urban Bank had collapsed and been closed by the Bangko Sentral ng Pilipinas.

  What changed. Exportbank acquired Urban Bank and incorporated the transaction into its expansion strategy.

  Aftermath. The acquisition increased Exportbank's banking footprint, but the available material does not provide detailed financial or operational results.

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• 2014Union Bank acquires the remains of Exportbank

  Union Bank of the Philippines bought the remains of Exportbank after the bank's closure and receivership.

  M&A
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• 2012Bangko Sentral ng Pilipinas closes Exportbank for insolvency

  The Philippine central bank closed Exportbank on April 27, 2012, citing insolvency, and the Philippine Deposit Insurance Corporation placed it under receivership.

  BankruptcyRegulation
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• 2012Uninsured depositors advocate rehabilitation of Exportbank

  The Coalition of EIB Uninsured Depositors supported rehabilitation as an alternative to liquidation and represented a large group of uninsured depositors.

  Other
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• 2001Exportbank acquires Urban Bank after its regulatory closure

  Exportbank acquired Urban Bank, which had collapsed after being closed by the Bangko Sentral ng Pilipinas.

  M&A
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• Proposed rehabilitation arrangement with Banco de Oro does not proceed

  A proposed rehabilitation deal involving Banco de Oro Universal Bank failed to proceed because pending legal matters prevented completion.

  Other
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1. Exportbank