RCBC raises P16.6 B from oversubscribed fixed-rate bond offer

Published July 16, 2020, 10:00 PM

by James A. Loyola

Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has raised P16.6 billion from its two-year Peso fixed rate bond offering, more than five times its announced minimum issue size of P3 billion.

In a disclosure to the Philippine Stock Exchange, the bank said it closed the offering ahead of its original public offer end date of July 17, 2020 as orders have exceeded its target.

The Bonds will be the fifth tranche under RCBC’s P100 billion Bond and Commercial Paper Program established on March 17, 2020.

It was offered in denominations of P100,000 and increments of P10,000 thereafter, issued at a coupon of 3.25 percent per annum.

The Bonds are expected to be listed on the Philippine Dealing and Exchange Corporation (PDEx) on 27 July 2020.

Proceeds from the offering will be used to support the Bank’s asset growth, re-finance maturing liabilities, and fund other general purposes.

ING Bank N.V. Manila Branch is the Sole Lead Arranger and Bookrunner for the offer, while RCBC Capital Corporation is the Financial Advisor for the offer. The Selling Agents for the Bonds are ING and RCBC.