RCBC raises P7.5 billion from bond issuance

Manila, Phillipines — Rizal Commercial Banking Corp. (RCBC) has raised P7.5 billion to further aid the bank’s assets and strengthen its liquidity as investors swarmed its bond offering.

RCBC treasurer Horacio Cebrero said strong demand from investors resulted in an oversubscription of more than two times, allowing the bank to upsize the volume from the original P3 billion.

“The success of the transaction is a testament of investors’ trust in the bank,” Cebrero said.

The country’s 10th largest lender in terms of assets owned by the family of the late taipan Alfonso Yuchengco issued three-year fixed rate bonds carrying a coupon of 4.426 percent per annum.

Standard Chartered Bank acted as the sole arranger and bookrunner for the fund raising activity.

“The success of RCBC’s issuance is demonstrative of how receptive investors have become to banks with quality credit,” Standard Chartered Bank chief executive officer Lynette Ortiz said.

Ortiz said the bank’s transaction would further contribute to the deepening of the debt capital markets space in the Philippines.

Last July, the board of directors of RCBC raised the bank’s bond and commercial paper program to P100 billion from P30 billion as part of efforts to raise funds to further strengthen its regulatory liquidity ratios.

Of the total amount, the Yuchengco-led bank has already raised P30.5 billion.

It raised P15 billion via the issuance of the first peso-denominated Association of Southeast Asian Nations (ASEAN) green bonds last February and another P8 billion from the maiden ASEAN sustainability bonds issued last June.

Aside from the onshore debt market, RCBC has also raised $300 million via the issuance of sustainability funds in the offshore debt market last September as part of its $2 billion medium term note program.

Proceeds from the fund raising activity would support, finance or refinance the RCBC’s loans to customers or its own operating activities in eligible green and social categories as defined in the RCBC’s Sustainable Finance Framework.