RIZAL COMMERCIAL Banking Corp. (RCBC) on Monday said it raised P14.756 billion through its offer of sustainability bonds.

The bank’s offer of ASEAN (Association of Southeast Asian Nations) sustainability bonds was oversubscribed by nearly five times from the planned P3-billion issue size amid strong demand from investors, RCBC said in a statement.

The 2.25-year papers maturing in 2024 carry a coupon rate of 3% per annum. They were offered from Jan. 31 to Feb. 11 and were listed on the Philippine Dealing and Exchange Corp. on Monday.

“The proceeds from the offer will be used to support asset growth, refinance maturing liabilities and other general funding purposes in line with the bank’s Sustainable Finance Framework,” the bank said.

The bank’s sustainable finance framework has been certified by Sustainalytics, an independent environmental, social, and governance research and ratings provider.

The Hongkong and Shanghai Banking Corp. (HSBC) was the sole lead arranger for the transaction. HSBC also served as a bookrunner alongside RCBC Capital Corp., which was the financial advisor for the offering. Both HSBC and RCBC were also selling agents for the papers.

The offering marked RCBC’s seventh foray into the peso bond market and brings the total amount raised by the lender via issuances since 2019 to P86.8 billion.

Prior to the latest issuance, RCBC raised P17.87 billion through an ASEAN sustainability bond offering in 2021.

Aside from sustainability-linked bonds, RCBC has also been offering green time deposits to fund its sustainable asset portfolio.

The bank’s net income more than doubled to P2.01 billion in the third quarter of 2021 from a year earlier as it booked higher earnings from its core businesses. This brought RCBC’s nine-month net profit higher by a third to P5.338 billion.

The Yuchengco-led lender’s shares closed at P20.90 apiece on Monday, down by 45 centavos or 2.11% from its previous finish. — L.W.T. Noble

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