RIZAL Commercial Banking Corp. raised P15 billion in green bonds.

RIZAL COMMERCIAL Banking Corp. (RCBC) has completed the public offering of its local currency green bonds, raising P15 billion to support environmental and climate projects.
In a statement to the local bourse on Tuesday, the Yuchengco-led lender said it shortened the public offer period of its peso-denominated green bonds by three days to Jan. 22, 12 p.m.
The 1.5-year bonds, which will be issued on Feb. 1 at the Philippine Dealing & Exchange Corp., were originally scheduled to be offered to the public from Jan. 21-25.
In a previous statement, RCBC Senior Executive Vice-President and Treasurer Horacio E. Cebrero III said the green bond issuance was upsized to P15 billion from the P5 billion planned initially, supported by “overwhelming” support from its institutional investors, with the order books being more than thrice subscribed.
Proceeds from the issue will be used to support RCBC’s expansion and initiatives in the green space.
In particular, the additional capital will be allocated to fund and refinance loans issued for renewable energy, green buildings, clean transportation, energy efficiency as well as pollution prevention and control.
The bonds will be issued in line with the newly-established green finance framework of RCBC, which was put up to support future fund-raising activities for environment-related projects.
The finance framework is first in the Philippines to be aligned with the Association of Southeast Asian Nations (ASEAN) Green Bond Standards 2018 by the ASEAN Capital Markets Forum, the bank said.
RCBC Chief Executive Officer Gil A. Buenaventura said in a previous disclosure that the bank affirms its commitment to support environmental sustainability through its operations through the initiative.
Domestic banks have been slowly venturing into the green financing market. In previous years, BDO Unibank, Inc. and China Banking Corp. raised $150 million each by issuing green bonds to sole investor International Finance Corp.
Bank of the Philippine Islands, on the other hand, said it is mulling to return to the offshore bond market this year, as it is “contemplating” issuing green bonds.
RCBC posted a P3.2-billion net profit in the first nine months of 2018, down 5.9% from a year earlier.
RCBC shares closed at P27 apiece on Tuesday, up 30 centavos or 1.12% from its previous finish. — Karl Angelo N. Vidal