RCBC raises P7 billion from debt market

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) raised P7.05 billion as it braved the domestic debt market amid the coronavirus disease 2019 or COVID-19 pandemic.

Horacio Cebrero, senior executive vice president and treasurer, said the strong demand from investors resulted in an order book more than twice oversubscribed and allowed the bank to upsize the original volume of P3 billion.

“This is a strong indication of the investors’ continuing trust and confidence in the bank. It is an assurance for the investors in the capital markets that the bank will continue to be supportive of business activities despite the current challenges in the environment,” Cebrero said.

RCBC offered two-year fixed rate bonds with a coupon rate of 4.848 percent per annum during a shortened offer period from March 23 up to March 25 instead of March 27. The bonds were listed on the Philippine Dealing and Exchange Corp. (PDEx) yesterday.

Cebrero said proceeds of the fund raising activity would be supportive of the growth of the bank’s assets and further strengthen its liability structure.

HSBC and RCBC Capital Corp. served as joint arrangers, while HSBC acted as sole lead arranger and bookrunner. HSBC and RCBC also served as selling agents.

The bank’s fourth foray into the domestic bond market under its P100 billion bond and commercial paper program was met with strong demand from investors.

The bank has been tapping the onshore and offshore debt markets to support asset growth, refinance maturing liabilities, and other general funding purposes.

It has decided to more than triple its bond and commercial paper program to P100 billion instead of P30 billion to further strengthen its regulatory liquidity ratios.