RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to raise P3 billion in fresh funds as it taps the domestic bond market for the second time this year.

RCBC said in a filing with the local bourse on Monday that the fixed-rate bonds will have a tenor of two years and a fixed interest rate of 3.25% per annum.

“The funds raised from the bonds will be utilized to support asset growth, refinance maturing liabilities, and other general funding purposes,” it said.

RCBC said the minimum issue size for the bonds is at P3 billion, with an option to upsize under certain market and other conditions.

Its public offer period started on Monday, July 6, and will end on July 17, subject to adjustments.

Meanwhile, the issuance and listing of the bonds at the Philippine Dealing Exchange Corp. is set on July 27.

The bonds will be the fifth tranche of RCBC’s P100-billion bond and commercial paper program of which P62.45 billion remains unissued.

The sole lead arranger and book runner for the transaction is ING Bank N.V. Manila, while RCBC Capital Corp. served as the financial advisor. Both ING and RCBC Capital are selling agents of the bonds.

In April, RCBC raised P7.05 billion from two-year fixed-rate bonds that carry a coupon rate of 4.848%. The proceeds from the issuance will be used to support asset growth and to improve the bank’s liability structure.

The Yuchengco-led bank’s net income climbed 77% year on year to P2.3 billion in the first three months of 2020, boosted by its strong core business and trading gains.

RCBC’s shares finished trading at P17.04 apiece on Monday, down by two centavos or by 0.12% from its previous close. — Luz Wendy T. Noble