Asia, European investors keen on RCBC’s sustainability bonds 

- Advertisement -

Rizal Commercial Banking Corporation (RCBC) is raising $350 million through the issuance of a five-year senior unsecured fixed rate sustainability bonds. 

One of the top ten universal banks in the country, RCBC said it will use the proceeds to finance and refinance loans to customers in eligible green and social categories as defined by RCBC’s Sustainable Finance Framework.

The bonds have been priced at a coupon rate of 5.375 percent, will be issued at 99.279 percent of the par value, and settled by January 28, 2025.

- Advertisement -

The bonds will be part of the bank’s $4 billion medium-term note program. The bonds are rated Baa3 by Moody’s credit rating.

RCBC said the bonds will be listed on the Singapore Exchange Securities Trading Limited.

The bank said the transaction received strong interest from a wide range of “high quality Asian and European investors, which allowed the bank to tighten final price guidance to 115 basis points bps over the 5-year US treasury yield. 

RCBC said this is the tightest pricing spread achieved among its dollar-denominated senior unsecured issuances. 

The bonds received more than $1 billion in orders for a 2.9x oversubscription. 

“The notes saw orders from more than 77 accounts – clearly reflecting global investors’ continued confidence in RCBC and its credit. The order book was well diversified with 57 percent allocated to asset managers, 38 percent to banks, and 5 percent to insurance companies and private banks,” it said.

Author

- Advertisement -

Share post: