Logo of Rizal Commercial Banking Corp. (RCBC)
MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) raised P12.21 billion from the domestic bond market, enabling it to support more sustainability-related programs.
The Yuchengco-led bank on Thursday said it had listed the bonds, which are due 2028, on the Philippine Dealing and Exchange Corp. These carry a coupon rate of 6 percent per year.
The order book was oversubscribed by more than four times. Its minimum issue size was set for up to P3 billion.
Proceeds raised from the offer must be used to finance or refinance eligible green and social projects under its sustainable finance framework.
These include projects related to renewable energy, green buildings, clean transportation, energy efficiency and pollution prevention and control, among others.
Under the social category, some eligible projects are those related to health care, education, employment generation and affordable housing.
The notes are part of RCBC’s P200-billion bond and commercial paper program.
It also comes after the Bangko Sentral ng Pilipinas opted to cut rates in June. Monetary policy easing typically makes fixed-income securities, such as bonds, more attractive as these promise a higher yield for investors.
READ: Lending gives RCBC profit a 10% boost
P99B raised so far
This represents RCBC’s eighth peso-denominated bond offer. The latest outing brings the total amount raised by the bank from all bond issuances since 2019 to P99.01 billion.
Last January, RCBC, the country’s sixth-largest bank in terms of assets, raised $350 million from an offshore bond program at 5.375 percent per year.
The notes, which will mature in five years, are part of RCBC’s $4-billion medium-term note program.
In the first quarter this year, robust consumer lending boosted the earnings of RCBC by 10 percent to P2.43 billion.
Net interest income surged by 29 percent to P12.3 billion. Consumer loans swelled by 39 percent, owing to higher housing and auto loans. These jumped by 24 percent and 45 percent, respectively. —Meg J. Adonis
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