By James A. Loyola
Robinsons Bank Corporation (Robinsons Bank), the financial services arm of the JG Summit Group, is planning to raise up to ₱5 billion from the issuance of bonds.
This consists of the proposed bond issue of ₱2.5 billion and an oversubscription option of ₱2.5 billion.
Philippine Rating Services Corporation (PhilRatings) assigned an issuer credit rating of PRS Aa minus (Corp.) with a Stable Outlook.
An Issuer Credit Rating is a measure of the general creditworthiness of a company over a one year period. A PRS Aa (Corp.) rating means the bank has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
“The issuer credit rating takes into consideration the bank’s support from strong shareholders, its well-experienced management, and more than satisfactory funding profile,” PhilRatings said.
It also factored in the bank’s marginal, but growing banking franchise and its modest profitability. The rating also takes into account the Philippine economy’s continued growth, which is expected to benefit the domestic banking industry.
“The Philippines’ favorable macroeconomic environment is seen as providing stability to the banking industry’s credit fundamentals,” said PhilRatings.
It noted that, “the country’s continued strong economic growth will support domestic credit, with forecasts of a 14 to 15 percent expansion in corporate and household loan demand in 2019.”
The government’s push for aggressive infrastructure spending will also support credit growth via its multiplier effect until the end of the current administration’s term in 2022.
Robinsons Bank it the country’s 18thlargest bank based with of assets of ₱120.7 billion based on data from Bangko Sentral ng Pilipinas (BSP), as of June 30, 2019.
The bank’s distribution network consisted of 149 branches and 310 ATMs. Its subsidiary, Legazpi Savings Bank, had 16 and 18 branches and ATMs, respectively as of September 30, 2019.