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Friday, March 29, 2024

PSE approves RCBC’s P15-billion rights offering

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The Philippine Stock Exchange approved the P15-billion stock rights offering of Rizal Commercial Banking Corp. of the Yuchengco Group.

The PSE said it approved the listing of up to 540 million additional RCBC shares under the rights offering to all stockholders of record as of June 14.

RCBC expects to raise gross proceeds of up to P15 billion, which it will use to support the increase in the capital stock to P28 billion from P16 billion and to comply with the minimum capital thresholds required by the Bangko Sentral ng Pilipinas.

The offering is also expected to support the growth in the risk assets of the bank over the next three years. 

The offering price, to be set on June 7, will be based on the 10-day volume weighted average price of RCBC subject to a discount.

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The offering period is scheduled from June 25 to 29, with the tentative listing date on Aug. 3.

The bank tapped Credit Suisse Ltd and UBS as global coordinators and international underwriters of the offering.

The Yuchengco Group of Companies and Cathay Life Insurance Co Ltd., the two largest shareholders of the bank, earlier committed to subscribe to their proportionate share of the stock rights. 

“The bank believes it is well positioned to capitalize on the economic growth of the Philippines, which the bank expects to be conducive to further the loan expansion across the industry segments and consumer spending,” the bank said.

RCBC said it would focus on consumer, SMEs, the middle market and microfinance sectors in a bid to ensure sustainable loan growth. It also intends to invest in technology to improve customer experience, broader investor base and increase operational efficiency.

RCBC is the third bank to conduct a right offering this year.

Early this year, Bank of the Philippine Islands of the Ayala Group raised P50 billion while Metropolitan Bank and Trust Co. of tycoon George Ty generated P60 billion from their respective rights offering.

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