RCBC eyes return to international debt market

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) is returning to the offshore bond market to raise funds to refinance maturing foreign debt and support asset growth.

In a disclosure to the Philippine Stock Exchange, the Yuchengco-led bank said its board of directors approved last Jan. 30 the issuance of foreign currency denominated senior notes subject to market conditions.

“No immediate plans to issue, Just preparing for when market conditions are better,” an official said in a text message.

The issuance of bonds in the offshore debt market is part of the bank’s medium term note program.

In early 2020, RCBC further hiked the size of its medium term note program to $3 billion from $2 billion. It has been regularly updating its offshore borrowing program, launching $1 billion in 2011 and doubling to $2 billion in January 2018.

RCBC has so far raised $1.6 billion from the offshore debt market. It last tapped overseas financing in August 2020 when it raised $300 million via the first ever Tier 1 securities issuance out of the Philippines.

The fund raising activity was oversubscribed as orders peaked at $825 million and at the final price guidance level at over $600 million with orders from 57 accounts.

Aside from the offshore debt market, the bank has also been tapping the onshore debt market for much needed funds after it more than tripled its bond and commercial paper program to P100 billion from the original size of P30 billion, to further strengthen its regulatory liquidity ratios.

In February last year, RCBC raised P14.75 billion via the issuance of ASEAN Sustainability Bonds due 2024 following the P16 billion ASEAN Sustainability Bonds due 2023 and 2026 issued in March 2021.