RCBC raises $75 million from debt sale

Posted on March 30, 2012

RIZAL COMMERCIAL Banking Corp. (RCBC) yesterday said it has raised another $75 million from the sale of the re-issued five-year senior unsecured notes due in 2017.

In a disclosure to the stock exchange, the bank said it raised $75 million, on top of the $200 million last January, from the sale of the debt papers.

“We tapped the debt market again for general funding to be used for our investments and to finance our loans,” RCBC Senior Vice-President Raul Victor B. Tan said in a telephone interview yesterday.

The bonds were offered to the market last Tuesday and the debt sale was closed the following day, he added.

The five-year notes carried a 4.779% yield, 47.1 basis points less than the 5.25% they fetched when they were first issued last January, as they aligned with the debt papers’ current market rate.

Mr. Tan said the debt papers will be listed on the Singapore Stock Exchange on April 3, which is also their settlement date.

Deutsche Bank AG was mandated to be the sole book runner of the debt issuance.

The debt sale was part of the bank’s $1-billion Euro Medium-Term Note Program approved by the RCBC board in September last year.

Other local banks that have tapped the debt market this year, so far, are Land Bank of the Philippines (Landbank), Security Bank Corp. (Security Bank), BDO Unibank, Inc and Philippine Savings Bank (PSBank) and the Development Bank of the Philippines (DBP).

In January, Landbank raised P10.5 billion from the sale of 10-year unsecured subordinated debt qualifying as Tier 2 capital with a 5.875% yield.

Last month, Security Bank raised P5 billion from the sale of seven-year long-term negotiable certificates of deposit that carried a 5.5% yield.

BDO raised $300 million from both offshore and onshore markets from the sale of five-year US dollar-denominated fixed rate senior notes with a 4.5% coupon rate and a 4.625% yield.

PSBank raised P3 billion from the sale of unsecured subordinated notes qualifying as Tier 2 capital with a 5.75% yield.

Earlier this month, DBP raised P5.65 billion from the sale of 10-year unsecured subordinated debt qualifying as Tier 2 capital that carried a 5.75% coupon rate.

RCBC -- the country’s fifth largest bank in terms of assets -- reported some P5.01 billion in net income last year, up 18% from the P4.25 billion it earned in 2010.

RCBC shares closed at P40.90 apiece yesterday, 0.2451% or 10 centavos more than their P40.80 close last Wednesday. -- Ann Rozainne R. Gregorio