BDO Capital & Investment Corporation, the issue manager for the initial public offering of National Reinsurance Corporation of the Philippines (PhilNaRe), intends to exercise its over-allotment option on 103,902,600 common shares on April 27, 2007, the listing date of PhilNaRe. At least 10% of the shares covered by the over-allotment option shall be allocated to local small investors, and be made available to those who submitted subscriptions during the offer period.

PhilNaRe, through BDO Capital and several other underwriters, is offering 638,000,000 shares at an offer price of P3.80 per share. The offer period was from April 16, 2007 to April 20, 2007.

As stated in the prospectus, PhilNaRe granted BDO Capital an option, exercisable within 30 days from April 27, 2007, the listing date of PhilNaRe, to purchase up to 103,902,600 new common shares to cover oversubscriptions. The over-allotment option, popularly known as the greenshoe option, gives underwriters the right to sell additional shares in a registered securities offering if demand for the securities is in excess of the original amount offered. The name “greenshoe” comes from The Green Shoe Company, the first issuer to grant this type of option. The over-allotment option for PhilNaRe represents approximately 5% of PhilNaRe’s issued and outstanding shares after the offer.

The Securities and Exchange Commission has approved the exercise of the over-allotment option.