RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to raise at least P3 billion from an offering of 2.5-year sustainability, marking its return to the peso debt market after over three years.
The bank on Wednesday started the public offer for its fixed-rate peso-denominated Series F ASEAN Sustainability Bonds, it said in a disclosure to the stock exchange.
“The bonds will be offered with a minimum issue size of P3 billion with an option to upsize,” RCBC said.
The offer period is set to run until July 9, unless shortened or extended by the bank, depending on market conditions. The bonds are scheduled to be issued, settled, and listed on the Philippine Dealing and Exchange Corp. on July 17.
The notes mark the eighth drawdown from RCBC’s P200-billion bond and commercial paper program, which was doubled in 2022 from the original P100 billion approved by the bank’s board of directors in 2019.
The bonds have a tenor of two years and six months and carry a fixed rate of 6% per annum.
They will be sold for a minimum investment amount of P100,000 and in increments of P10,000 thereafter.
“The funds to be raised from the offer will be used to finance or refinance, in whole or in part, the eligible green and social categories as described in the bank’s Sustainable Finance Framework,” RCBC said.
It said it received confirmation from the Securities and Exchange Commission on June 10 that the issue qualifies as an ASEAN Sustainability Bond issuance as it complies with the necessary standards.
Standard Chartered Bank (SCB) and RCBC Capital Corp. are the joint lead arrangers and bookrunners for the transaction. SCB is also a selling agent together with RCBC.
RCBC last tapped the domestic bond market in February 2022, raising P14.75 billion from the sale of 2.25-year ASEAN Sustainability Bonds.
The bank has raised P86.8 billion out of its P200-billion bond and commercial paper program, it said last month.
RCBC President and Chief Executive Officer (CEO) Eugene S. Acevedo said in November that the bank wants to tap both the onshore and offshore debt markets on a regular basis regularly starting this year as part of their new funding strategy to establish a constant presence in the capital markets.
Mr. Acevedo is set to retire within this year. RCBC Deputy CEO Reginaldo Anthony B. Cariaso, who was appointed to his post effective Jan. 1, is set to succeed him.
RCBC’s attributable net income rose by 10.26% year on year to P2.43 billion in the first quarter, driven by consumer loan growth.
Its shares climbed by five centavos or 0.2% to close at P25.05 each on Wednesday. — Aaron Michael C. Sy
