ROBINSONS BANK Corp. said it is considering offering fixed-rate peso bonds following the central bank’s relaxed regulations on lenders’ fund raising.
Robinsons Bank President Elfren Antonio S. Sarte said the Gokongwei-led lender is “considering” to raise fresh funds through peso-denominated bonds.
However, he said the capital-raising activity is “not approved yet.”
“No decision yet on size and term for the peso bond,” Mr. Sarte said in a text message.
Circular No. 1010 issued by the Bangko Sentral ng Pilipinas (BSP) in August simplifies the process for universal and commercial banks looking to raise funds via bonds, allowing lenders to issue fixed-rate bonds without having to secure central bank approval.
The reform forms part of streamlined rules designed to deepen capital markets.
UnionBank of the Philippines, Bank of the Philippine Islands as well as Metropolitan Bank & Trust Co. recently raised P11 billion, P25 billion and P10 billion, respectively through fixed-rate securities.
Meanwhile, BDO Unibank, Inc. and Security Bank Corp. also announced their intention to raise more capital by establishing local currency bond programs worth P100 billion and P50 billion, respectively.
In October, Robinsons Bank said it is set to raise P3.5 billion via long-term certificates of deposit (LTNCD) to fund the expected growth of its lending business.
The papers, which will be offered in the first half of the year, will constitute the second tranche of the lender’s P5-billion LTNCD program approved by the central bank.
The Gokongwei-led bank booked a P292.4-million net income in the nine months ended September, 32% higher than the P222.2 million recorded in the same period last year.
Robinsons Bank is licensed as a commercial lender and is the 19th biggest in the industry in asset terms as of June. — Karl Angelo N. Vidal