RCBC returns offshore to raise $150-M notes

Rizal Commercial Banking Corp. (RCBC) raised $150 million as it returned to the offshore debt market to raise funds amid the highly competitive banking industry.

Ma. Christina Alvarez, corporate information officer at RCBC, said in a notice to the Philippine Stock Exchange (PSE) that the bank’s issuance of the senior unsecured, fixed rate notes has brought to $450 million the total amount it raised from the international debt market this year.

Alvarez said the fund raising activity via the reopening of the $300 million notes issued last month represents the second tranche of the bank’s $2 billion medium term note program.

The notes were issued at 99.892 percent with a coupon of 4.125 percent per annum. The debt instrument would be listed on the Singapore Stock Exchange.

About 97 percent of the total issuance was allocated to investors in Asia particularly the Philippines. The listed bank held roadshow meetings and fixed income investor calls in Singapore and Hong Kong early this week.

The notes in the first tranche were issued at 99.892 percent with a coupon rate of 4.125 percent per annum.

Proceeds of the fund raising activities would be used for refinancing operations, general corporate purposes, and to participate in infrastructure deals.

RCBC is also set to raise at least P15 billion via a stock rights offering in June.

Chester Luy, head of treasury at RCBC, said the bank is the most diversified bank in terms of funding sources including the loans syndicated market, senior notes market, repurchase financing, long term negotiable certificates of deposits (LTNCDs), as well as the tier 1 and tier 2 markets.

Luy said RCBC would use the proceeds to support and finance medium to long-term asset growth and other general corporate purposes.

The Yuchengco-led bank expects to book a profit growth of five to 10 percent this year as it aims to take advantage of the growing economy and the massive infrastructure build up of the government.

RCBC president and CEO Gil Buenaventura said the bank has set a conservative target this year after its net income grew by 11.4 percent to P4.31 billion last year from P3.87 billion in 2016.