RCBC eyes P5 billion from bond issue

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. is raising at least P5 billion as it returns to the domestic debt market via the issuance of sustainability, green or plain format fixed-rate bonds.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said the planned fund raising activity is part of its peso bond and commercial paper program that was doubled to P200 billion by its board of directors last June 27.

“The terms and timing of the proposed bonds transaction will be determined subject to the bank’s requirements and prevailing market conditions,” RCBC said.

According to the country’s sixth largest private bank in terms of assets, the proceeds of the fund raising activity will be used to support asset growth, refinance maturing liabilities, and supplement other general funding purposes.

RCBC treasurer Alberto Pedrosa earlier 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 P86.8 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.

Last month, the Bangko Sentral ng Pilipinas (BSP) gave RCBC the green light to its Articles of Incorporation (AOI) and to take in additional strategic foreign investors.

The regulator has allowed the listed bank to delete 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.

The bank, owned by the family of the late taipan Alfonso Yuchengco, 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 AOI in order to accommodate any capital to be provided in the future by a new/existing foreign investors into RCBC,” the bank stated in the disclosure.