RCBC eyes P3 billion from peso bonds

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is raising at least P3 billion as it returns to the domestic debt market through the issuance of peso bonds to support asset growth, refinance maturing liabilities and for other general funding purposes.

In a disclosure to the Philippine Stock Exchange (PSE), RCBC said the fund raising activity has an option to upsize under certain market and other conditions.

The bank said the bonds carrying a fixed interest rate of 3.25 percent per annum would be offered until July 17, but could be adjusted depending on the demand.

Tentative listing date on the platform of the Philippine Dealing and Exchange Corp. (PDEx) is on July 27. ING Bank Manila branch is the sole lead arranger and bookrunner, RCBC Capital Corp. is the financial advisor, while ING and RCBC are the selling agents.

This is the fifth tranche under its P100-billion bond and commercial paper program, or more than triple the original size of P30 billion.

So far, the country’s eighth largest lender in terms of assets has raised P37.55 billion, including P7.05 billion via the issuance of series A bonds last April, the P7.5 billion fixed rate bonds last November, the P8 billion from the maiden Association of Southeast Asian Nations sustainability bonds in June last year, and the P15 billion via the issuance of the first peso-denominated ASEAN green bonds in February last year.

The listed bank has been tapping both the onshore and offshore debt markets for much needed funds.

RCBC is returning to the offshore debt market to raise as much as $300 million via the issuance of non-cumulative unsecured subordinated capital securities that are eligible as additional Tier 1 capital under Basel 3 to augment its funding for loans under its sustainable finance framework.

The net proceeds of the fund raising would be used to support the RCBC’s loans to customers and other general corporate purposes in line with eligible green and social categories as defined in its sustainable finance framework.