Rizal Commercial Banking Corp., one of the biggest universal banks in the country, said Monday it raised P14.75 billion from the issuance of ASEAN sustainability bonds amid strong demand from investors.
RCBC said in a disclosure to the stock exchange it listed the P14,756,260,000 Series E ASEAN Sustainability Bonds due 2024 on Philippine Dealing and Exchange Corp. on Monday. The bonds carry a coupon of 3 percent per annum.
Strong demand from investors resulted in an order book almost five times its announced minimum issue size of P3 billion. The bank concluded the offering on Feb. 11, 2022.
“The proceeds from the offer will be used to support asset growth, refinance maturing liabilities and other general funding purposes in line with the bank’s Sustainable Finance Framework,” it said.
The bonds formed part of RCBC’s P100-billion bond and commercial paper program. The offering marked the seventh time that the bank tapped the peso bond market which brought the total amount raised by RCBC from all bond issuances since 2019 to P86.80 billion—a record amount demonstrating investors’ confidence in the various initiatives RCBC has taken to fuel its growth.
The Hong Kong and Shanghai Banking Corp. Ltd. was the sole lead arranger and bookrunner, together with RCBC Capital Corp. as the financial advisor for the transaction. Selling agents were HSBC and RCBC.
RCBC is a leading financial services provider in the Philippines, offering a wide range of banking and financial products and services. It is engaged in all aspects of traditional banking, investment banking, microfinance, retail financing (auto, mortgage and housing loans, and credit cards), remittance, leasing, foreign exchange and stock brokering.
RCBC posted an unaudited consolidated net income of P5.3 billion in the first three quarters of 2021, or 33 percent higher than in the same period in 2020.
Business momentum continued to accelerate, with strong double-digit growth of 13 percent in customer loans and 30 percent in low-cost CASA deposits, both metrics performing better than the industry.
RCBC saw significant expansion in its loan book across segments, led by the corporate loan portfolio growing by 17 percent and the SME portfolio by 18 percent.
The bank supported working capital requirements and continued to participate in project finance transactions for renewable energy projects in the country and the Southeast Asian region.
Higher volume of loan and treasury assets, coupled with lower funding costs, propelled net interest income to P21.2 billion, up by 8 percent year on year.