RCBC doubles peso bond, commercial paper program to P200 billion

In a disclosure to the Philippine Stock Exchange (PSE), the listed bank said its board of directors approved the increase in its borrowing program during a regular meeting on Monday.
STAR / File

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) has doubled its peso bond and commercial paper program to P200 billion from P100 billion to raise funds to support asset growth and refinance maturing liabilities.

In a disclosure to the Philippine Stock Exchange (PSE), the listed bank said its board of directors approved the increase in its borrowing program during a regular meeting on Monday.

RCBC treasurer Alberto Pedrosa said there was a need to raise the peso bond and commercial paper program as the previous P100 billion has almost been used up.

Of the previous program, the bank has raised P86.80 billion since 2019, leaving a balance of P13.2 billion. This includes the P14.75 billion ASEAN sustainability bonds issued early this year.

Pedrosa said proceeds from the additional bond and commercial paper program would be used to support RCBC’s asset growth, refinance maturing liabilities, and for other general funding purposes.

Likewise, the listed bank  reported that stockholders approved the amendments to its Articles of Incorporation deleting Article 7 wherein the RCBC’s common shares of stock may be transferred to Philippine and foreign nationals provided that not less than 60 percent and not more than 40 percent of the voting stocks shall be at all times beneficially owned by Philippine nationals and by foreign nationals, respectively.

This would allow the bank to take in additional strategic foreign investors as it continues to explore various capital raising opportunities.

RCBC said the proposed amendment would allow foreign ownership of the bank to exceed 40 percent.

“RCBC management continuously explores various capital raising opportunities. Some of these opportunities include foreign investors. RCBC is amending its Articles of Incorporation in order to accommodate any capital to be provided in the future by a new/existing foreign investors into RCBC,” the bank stated in an earlier disclosure.

Based on the bank’s 2021 annual report, total equity ownership of foreigners in RCBC’s common shares stood at 28.7 percent or 583.82 million common shares as of end-December.

Taipei-based Cathay Life Insurance Corp. has a 22.18 percent stake or equivalent to 452.08 million common shares.

In June last year, Tokyo-based Sumitomo Mitsui Banking Corp. (SMBC)  acquired close to a five percent stake in  RCBC for a total consideration of P4.48 billion.

The Yuchengco Group of Companies controls 50.11 percent of RCBC. These includes Pan Malayan Management and Investment Corp. with 39.64 percent, GPL Holdings with 4.03 percent, RCBC Retirement Plan with 2.54 percent, Malayan Insurance Co. with 2.3 percent, MICO Equities with 1.31 percent, Grepa Realty Holdings with 0.15 percent, RCBC Capital with 0.07 percent, Manila Memorial Park Cemetery with 0.6 percent, and House of Investments.

 

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