RCBC raises P16.6 billion via two-year bonds

RIZAL Commercial Banking Corp. (RCBC) cut short its offer of two-year fixed rate bonds after raising P16.6 billion, almost six times its initial target.

“[O]rders have reached more than five times its announced minimum issue size of P3 billion, allowing the bank to raise an aggregate of around P16.6 billion,” RCBC said in a statement on Thursday.

The bonds have a coupon rate of 3.25% per annum with a tenor of two years. It was sold in denominations of P100,000 and increments of P10,000 thereafter.

The bond offer period ended on July 15, ahead of the scheduled July 17 closing date. The issue’s listing on the Philippine Dealing and Exchange Corp. is set on July 27.

“Proceeds from the offering will be used to support the Bank’s asset growth, refinance maturing liabilities, and fund other general purposes,” RCBC said.

The papers are the fifth tranche of the bank’s P100-billion bond and commercial paper program.

ING Bank NV-Manila served as the sole lead arranger and bookrunner for the offer with RCBC Capital Corp. as the financial advisor. ING and RCBC were the selling agents for the bonds.

In April, the Yuchengco-led lender also raised P7.05 billion from two-year fixed rate bonds with a coupon rate of 4.848%. Funds raised from the issuance will be used to support asset growth and improve the bank’s liability structure.

RCBC’s net income in the first quarter surged 77% to P2.3 billion, backed by its strong core business and trading gains.

Its shares closed at P16.82 apiece on Thursday, down by 18 centavos or by 1.06% from the previous finish. — LWTN