Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has successfully listed its 3-year Fixed Rate Bonds on the Philippine Dealing and Exchange Corporation (PDEx) which carries a coupon rate of 4.426 percent per annum and will be due on November 2022.
As early as the first day of the offer period, the Bank achieved its target offering of P3 billion. Strong demand from investors resulted in an orderbook more than 2x oversubscribed, allowing the bank to upsize the total offering amount to P7.5 billion. The public offering was completed last November 6.
”The success of the transaction is a testament of investors’ trust in the bank,” RCBC Senior Executive Vice President and Treasurer Horacio Cebrero III said.
Proceeds from the issuance would further aid the growth of the Bank’s assets and strengthen its liquidity.
Lynette Ortiz, Chief Executive Officer of Standard Chartered Bank, said that it was more than an opportune time for RCBC’s issuance given constructive market conditions.
“The success of RCBC’s issuance is demonstrative of how receptive investors have become to banks with quality credit.”
She added that RCBC’s transaction would further contribute to the deepening of the Philippine Debt Capital Markets space.
RCBC’s bond issuance forms part of its P100 billion Bond and Commercial Paper Program, which was increased earlier in July.
The transaction marks the third time that the bank has tapped the peso bond market, with the first being its P15 billion Asean Green Bond Issuance in February, followed by its P8 billion Asean Sustainability Bond Offering in June.
This bond offering brings the total amount raised by RCBC to P30.5 billion for 2019, a record amount demonstrating investors’ confidence in the various initiatives RCBC has taken to support the bank’s growth.