RCBC updates $2 billion note program

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) is set to tap the offshore debt market soon after updating its $2 billion medium term note program.

RCBC senior vice president and chief information officer Christina Alvarez said the bank’s board of directors approved the updated medium term note program last Jan. 29.

“With the updated program, RCBC retains the flexibility to capitalize on favorable market conditions and tap the debt capital markets, while conforming to its foreign currency borrowing strategy,” Alvarez said.

She said in a text message to The STAR that proceeds of the fund raising activity would be used to bankroll medium to long term asset growth.

Ma. Christina Alvarez, corporate information officer at RCBC, said in a notice to the Securities and Exchange Commission (SEC) the bank’s board of directors has approved the increase in its medium term note program to $2 billion from $1 billion.

In March 2006, RCBC doubled the size of the note program to $2 billion from $1 billion to give the country’s 10th largest bank more flexibility in accessing the offshore market through a variety of currencies and financial instruments.

The bank launched a $1 billion euro medium term note program in September 2011 to issue US dollar-denominated securities marketed and issued outside the US.

RCBC last tapped the international debt market in October 2015 when it raised $320 million from an offshore bond float priced to yield a record low 3.45 percent per annum.

RCBC president and CEO Gil Buenaventura earlier said the bank is on track and ready to take advantage of the opportunities expected from the favorable business environment in 2018.

“Our delivery channels are geared up with new branches and improved ATM systems supported by strengthened measures in anticipation of the increased client activity in 2018,” he said.

RCBC’s net income grew 11.4 percent to P4.3 billion last year from P3.9 billion in 2016 after a strong performance in the fourth quarter.

The bank ended 2017 with a footprint of 508 branches and 1,562 ATMs, resulting in a 3.07 branch-to-ATM ratio, one of the highest in the industry.