Rizal Commercial Banking Corp. (RCBC) said Friday that it will issue fixed-rate ASEAN Sustainability bonds denominated in pesos to fund projects qualifying under its sustainable finance framework.

In a disclosure Friday, RCBC said that the securities have tenors of either 2.5 years or 5.25 years.

“The bonds will have a minimum issue size of P3 billion, with an option to upsize…(They) will be offered at a fixed interest rate of 3.20% per annum for the 2.5-year tenor and 4.18% per annum for the 5.25 year tenor,” RCBC said.

The bank said that the public offering will run until March 19, but the time frame can be extended or shortened by RCBC after consultation with the sole lead arranger and financial advisor. It added that it expects to list the peso bonds on the Philippine Dealing and Exchange Corp. (PDEx) debt market by the end of March.

Standard Chartered Bank’s Philippine branch (SCB) is the issue’s sole lead arranger and bookrunner, while RCBC Capital Corp. stood as the financial advisor for the issue. Both SCB and RCBC Capital are selling agents.

Proceeds from the ASEAN Sustainability bonds will go to “supporting asset growth, re-financing maturing liabilities, general funding purposes and eligible loans defined in the bank’s sustainable finance framework.”

RCBC’s sustainable finance framework is certified by independent research firm Sustainalytics, an environmental, social, and governance, and corporate governance research and ratings company.

The ASEAN Capital Markets’ Forum said that the proceeds from ASEAN Sustainability bonds will be “exclusively used to finance or refinance a combination of green and social projects that offer environmental and social benefits, respectively.”

RCBC’s latest bond issue is the sixth drawdown of its P100-billion bond and commercial paper program. In the past two years, it has tapped the domestic bond market for P15 billion worth of ASEAN green bonds; P8 billion in ASEAN Sustainability Bonds; and a combined P31.15 billion worth of other bonds.

In 2019, the bank launched the first peso-denominated ASEAN green bond on PDEx, according to the PDS Group. PDEx is the trading services arm of the PDS Group.

On Friday, RCBC shares fell 1.71% or 0.3 centavos to P17.20. — Angelica Y. Yang

RELATED ARTICLESMORE FROM AUTHOR