RCBC’S STOCK RIGHTS OFFERING PLAN OK’D

The Philippine Stock Exchange (PSE) has approved a plan of Yuchengco-led Rizal Commercial Banking Corp. to raise as much as P15 billion through the sale of new shares to existing investors.

RCBC plans to sell up to 540 million new common shares at a price to be set by June 7, based on the offer term sheet posted by the PSE.

The entitlement ratio has yet to be firmed up.

The stock rights offering will run on June 25 to 29. The tentative listing date for the new shares is Aug. 3.

Credit Suisse (Singapore) Ltd. and UBS AG were tapped as joint global coordinators, joint bookrunners and international underwriters for this offering. RCBC Capital is also among the underwriters.

The shares to be issued will come from an increase in RCBC’s authorized capital stock from P16 billion to P28 billion, divided into 2.6 billion common shares with par value of P10 per share and 200 million preferred shares with par value of P10.00 per share.

The proceeds from the rights offer will be used to fund the increase in RCBC’s authorized capital stock in compliance with the minimum capital requirement imposed by the Bangko Sentral ng Pilipinas. This will also support growth in lending activities over the next three years.

Any rights shares that remain unsubscribed by eligible shareholders after the second round of the offer will be taken up by the domestic underwriter, which in turn, will offer them to qualified buyers.

RCBC expects to grow its net profit this year by 5 to 10 percent from last year’s level on higher lending activities to productive sectors of the economy. The bank grew its net profit last year by 11.4 percent to P4.3 billion.