RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to offer peso-denominated bonds, including sustainability-themed issuances, under its updated fundraising program.
The bank plans to issue fixed-rate peso bonds under its P200-billion bond and commercial paper program, it said in a disclosure to the stock exchange.
In 2022, RCBC doubled the size of its bond program from the original P100 billion approved by its board in 2019.
“The funds to be raised from any offer will be used to, among others, support asset growth, refinance maturing liabilities and other general funding purposes, and even include the financing or refinancing of new or existing sustainable projects as defined under, and consistent with the bank’s Sustainable Finance Framework,” the bank said.
“Under the program, the bank may, from time to time, offer, issue and sell the remaining balance of unissued unsecured and unsubordinated peso-denominated bonds in such form, amount, tenor, number of tranches, at such interest rate, and under such other terms and conditions as the bank may subsequently determine or approve,” it added.
RCBC said the terms and the timetable of each bond tranche will be announced accordingly and will depend on market conditions and management approval.
The bank has raised P86.8 billion out of its P200-billion bond and commercial paper program.
It last issued peso bonds in February 2022, raising P14.75 billion from the sale of 2.25-year ASEAN sustainability bonds.
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 closed at P25.95 apiece on Thursday, rising by 10 centavos or 0.39% from the previous day. — Aaron Michael C. Sy
