RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to tap the domestic debt market again this semester through medium-term papers, but will push back a planned dollar bond issue as it monitors global developments.
“There may be an increase in appetite for fixed income securities in the domestic markets as there will be opportunities opening up this second half of the year,” RCBC Senior Executive Vice-President and Treasurer Horacio E. Cebrero III said in a statement on Tuesday.
The bank said medium-term bonds will boost its liability management strategy.
Meanwhile, RCBC will push back its planned dollar bond issuance, saying it has enough liquidity at the moment and that it will assess developments in international markets to find the right timing for the offer.
“The planned US dollar senior note that we were looking at for this year has been pushed back primarily due to the high liquidity level that the bank currently maintains, and partly due to the developments in the interest and credit markets as a consequence of the ongoing pandemic,” Mr. Cebrero said.
RCBC’s directors last month approved the issuance of $300 million in non-cumulative, unsecured subordinated capital notes eligible as additional Tier 1 capital under Basel III requirements.
The issuance will fall under the bank’s sustainable finance framework and its net proceeds will be used to fund RCBC’s loans and other general business purposes.
The bank said it is also seeking investment opportunities in the Philippine and US equity markets.
Last month, the bank issued P16.616 billion in two-year bonds that carry a coupon rate of 3.25%. The offer was oversubscribed by more than five times.
RCBC said the proceeds will be used to support its lending activities and to refinance debts.
The bank also raised P7.05 billion in April from its offer of two-year fixed-rate bonds. Proceeds from the issuance will be used to support asset growth and to boost RCBC’s liability structure, it said.
RCBC’s net income surged 77% year on year to P2.3 billion in the first quarter, backed by its strong core business and trading gains.
The Yuchengo-led lender’s shares finished trading at P15.72 apiece on Tuesday, inching up by 12 centavos or 0.77% from its previous close. — L.W.T. Noble