Rizal Commercial Banking Corp. (RCBC) said Monday it is returning to the offshore bond market to raise funds for its “sustainability finance” projects.
RCBC said in a disclosure to the stock exchange it would offer US dollar-denominated senior unsecured sustainability notes via a drawdown under its $3-billion medium-term note program.
The bank engaged Australia and New Zealand Banking Group Ltd., Citigroup Global Markets Ltd. and SMBC Nikko Securities (Hong Kong) Ltd. as the joint book runners for the transaction.
The bank did not disclose the other terms of the offering.
RCBC increased the size of its medium term note program to $3 billion from $2 billion in 2020.
The bank so far raised $1.6 billion from the offshore debt market. It last tapped overseas financing in August 2020 when it raised $300 million via the first ever Tier 1 securities issuance out of the Philippines.
Under RCBC’s Sustainable Finance Framework, the bank can issue green, social or sustainable debt instruments. Since the creation of this framework, the bank has raised $1.4 billion in green and sustainability bonds.
Proceeds from the offering were used to finance or refinance RCBC’s loans to customers or its own activities in eligible green and social categories including loan disbursement for renewable energy, green buildings, clean transportation, energy efficiency, pollution prevention and control, sustainable water management, affordable basic infrastructure, affordable housing and essential services like health care.
The bank in 2020 also committed to stop lending to coal-fired power plants and instead boost lending to renewable energy projects.