RIZAL COMMERCIAL Banking Corp. (RCBC) has set the final terms for its stock rights offer (SRO), through which it looks to raise P15 billion to strengthen its capital ratio and fund its business expansion.
In a regulatory filing on Friday, the Yuchengco-led lender said it will offer 535.71 million common shares under the plan priced at P28 apiece.
The offering will be conducted from June 25 to 29.
Eligible shareholders are entitled to subscribe to a share for every 2.6132 common shares as of the June 14 record date. Ex-rights date is June 8.
RCBC said in a previous disclosure that proceeds from the capital raising exercise will be used to strengthen the lender’s capital ratio under Basel 3 standards.
The bank added that the additional capital to be fetched will be used to expand its businesses, particularly its retail loan segment.
“RCBC seeks to focus on consumer, [small and medium enterprises], the middle market and the microfinance sector, and to pursue sustainable loan growth,” the lender said in a previous disclosure.
It will also invest in technology to broaden its customer base and increase operational efficiency.
Prior to this, RCBC offered the second tranche of its senior unsecured fixed rate notes worth $150 million in April under its medium-term note facility.
The notes were rated “Baa2” by Moody’s Investors Service, a notch above the minimum investment grade.
Aside from RCBC, other big banks have raised additional capital through SROs this year, such as Metropolitan Bank & Trust Co. and Bank of the Philippine Islands.
RCBC, the tenth-biggest bank in asset terms as of end-2017, booked a net income of P1.1 billion, 13.1% higher than the P1 billion logged in the same period last year, supported by robust loan growth and reduction in non-performing assets.
Shares in RCBC dropped P1.50 or 4.34% to P33.10 apiece on Friday. — Karl Angelo N. Vidal