RIZAL COMMERCIAL Banking Corp. (RCBC) raised P7.05 billion via its latest bond offer, which was more than twice oversubscribed.
RCBC said in a statement that it has listed its two-year fixed-rate bonds due April 2020 on the Philippine Dealing and Exchange Corp. on Tuesday, April 7.
The bonds carry a coupon rate of 4.848% per annum. They were offered from March 23-25, with the lender ending the period earlier than the original end date of March 27 due to oversubscription, as it initially targeted to raise just P3 billion.
The latest issuance is the fourth tranche of the bank’s P100-billion bond and commercial paper program.
Proceeds from the issuance will be used to support asset growth and to boost the bank’s liability structure.
”It (bond issuance) is an assurance for the investors in the capital markets that the bank will continue to be supportive of business activities despite the current challenges in the environment,” RCBC Senior Executive Vice- President and Treasurer Horacio E. Cebrero III said in a statement.
Hongkong and Shanghai Banking Corp. (HSBC) was the sole lead arranger and book runner for the bond issuance.
Meanwhile, RCBC Capital Corp. was the financial advisor. HSBC and RCBC served as the selling agents for the bonds.
Prior to this issuance, the Yuchengo-led lender also tapped the bond market through a P15-billion ASEAN green bond issuance in February 2019, an offering of P8-billion ASEAN sustainability bonds in June and the P7.5 billion it raised in November.
With this, RCBC has so far raised P37.55 billion from its bond issuances since 2019.
The bank’s net income grew by 25% to P5.4 billion in 2019, supported by the strong performance of its core business, high margins, strong trading gains, and higher fee-based income.
RCBC’s shares ended trading at P17.68 apiece on Tuesday, up by 1.61% or by 28 centavos from its previous close. — L.W.T. Noble