On 10 January 2024, Rizal Commercial Banking Corporation returned to the US dollar debt markets, successfully pricing a $400 million 5-year Senior Unsecured Fixed Rate Sustainability Bonds via a drawdown under its $3,000,000,000 Medium Term Note Program.
The notes, rated Baa3 by Moody’s, will be issued at 99.543 with a coupon of 5.500 percent per annum and a maturity date of January 18, 2029. The notes will be issued under the Sustainable Finance Framework of RCBC.
The notes, issued with denominations of $200,000 and increments of $1,000 thereafter, will settle on January 17, 2024. These will be listed on the Singapore Exchange (SGX), similar to the bank’s other two outstanding USD-denominated bonds.
Capitalizing on the conducive market backdrop, the bank announced a mandate for a potential USD Sustainability Bond transaction last week and conducted a series of fixed income investor calls throughout the day.
Following one day of collecting investor feedback post the fixed income investor calls, the bank released terms and initial price guidance for a new 5-year and 1-day bond on January 10 2024, at a spread of 195bps over the 5-year US Treasury yield.
