RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to raise at least P3 billion from an offering of peso-denominated sustainability bonds this month, marking its return to the domestic debt market after over three years.
The listed bank will offer fixed-rate sustainability bonds with a tenor of two years and six months, it said in a disclosure to the stock exchange.
“The bank plans to offer a minimum of P3 billion, with the option to upsize,” RCBC said.
“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,” it added. “The bank continues to raise funding to be allocated for sustainability assets reinforcing its commitment to a greener and more sustainable future.”
The public offer is set to start on June 25 and will run until July 9, but RCBC said the timing is still subject to “final management determination, market, and other conditions.”
The bonds are expected to be issued and listed on the Philippine Dealing and Exchange Corp. on July 17.
“The bonds are intended to be issued as sustainability bonds under the ASEAN Sustainability Bond Standards subject to confirmation from the Securities and Exchange Commission (SEC). The bank has applied with the SEC for an ASEAN label to the sustainability bonds under the ASEAN Sustainability Bond Standards, and while it expects to receive such confirmation, there is no assurance that such confirmation will be obtained,” RCBC said.
The bond issuance will mark the eighth drawdown from RCBC’s P200-billion bond and commercial paper program, which was approved by its board in 2019 and upsized in 2022.
RCBC tapped Standard Chartered Bank (SCB) and RCBC Capital Corp. as the joint lead arrangers and bookrunners for the transaction.
SCB will also be a selling agent, along with RCBC.
RCBC last issued peso bonds 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 dropped by five centavos or 0.2% to close at P25.10 each on Monday. — A.R.A. Inosante
