RIZAL COMMERCIAL Banking Corp. (RCBC) on Monday started its offering of sustainability bonds, with the proceeds to be used for general funding purposes in line with the bank’s sustainable finance framework.

The bank targets to raise a minimum of P3 billion from the offering with the option to upsize, it said in a filing with the local bourse on Monday.

The latest offering makes up the seventh tranche of RCBC’s P100-billion bond and commercial paper program, which still has an unissued balance of P27.96 billion.

“The funds to be raised from the offer will be used to support asset growth, refinance maturing liabilities and other general funding purposes in line with the bank’s Sustainable Finance Framework,” RCBC said.

RCBC’s ASEAN sustainability bonds have a tenor of two years and three months, and carry a fixed interest rate of 3% per annum.

The offer period runs from Jan. 31 to Feb. 11, unless modified by RCBC. The papers will be issued and listed on the Philippine Dealing and Exchange Corp. on Feb. 21.

The Hongkong and Shanghai Banking Corp. (HSBC) is the sole lead arranger for the transaction. It will also be a bookrunner together with RCBC Capital Corp.

The bonds will be sold by HSBC and RCBC.

Asked for details, RCBC said the minimum investment for the bonds starts at P100,000, with increments of P10,000 thereafter.

RCBC raised P17.87 billion in March 2021 through 2.5- and 5.2-year ASEAN sustainability peso bonds.

The bank’s net profit more than doubled to P2.01 billion in the third quarter of 2021, backed by higher interest earnings and trading income.

This brought RCBC’s net income for the first nine months of 2021 to P5.338 billion, increasing by a third from the P4 billion booked in the same period of 2020.

The Yuchengco-led lender’s shares closed at P20.40 apiece on Monday, up by five centavos or 0.25% from its previous finish. — Luz Wendy T. Noble

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