Rizal Commercial Banking Corporation, one of the largest banks in the Philippines, is raising at least P3 billion from its planned 2.5-year and 5.25-year Fixed-Rate ASEAN Sustainability Peso Bond offering.
In a disclosure to the Philippine Stock Exchange, RCBC said the bonds will be offered with a minimum issue size of P3 billion, with an option to upsize.
The Bonds were priced on March 11, 2021 and will be offered at a fixed interest rate of 3.20 percent per annum for the 2.5-year tenor and 4.18 percent per annum for the 5.25-year tenor.
The funds raised from the Bonds offer will be utilized to support asset growth, re-finance maturing liabilities, other general funding purposes as well as eligible loans defined in the Bank's Sustainable Finance Framework.
The Bank's Sustainable Finance Framework has been certified by Sustainalytics, a leading independent Environmental, Social, and Governance research and ratings provider.
This is to ensure that the use of proceeds is aligned with those recognized by the Green Bond Principles 2018, the Social Bond Principles 2018, the Sustainability Bond Guidelines 2018, and the ASEAN Sustainability Bond Standards.
The Bonds issuance will be the sixth drawdown off the Bank's P100 billion Bond and Commercial Paper Program.
RCBC first tapped the local bond market with its P15 billion ASEAN Green Bond issuance in February 2019, followed by P8 billion ASEAN Sustainability Bonds in June 2019, P7.5 billion in November 2019, P7.05 billion in March 2020, and P16.6 billion in July 2020.
The public offering is slated to commence on March 12, 2021 and will run until March 19, 2021, which may be shortened or extended by the Bank in consultation with the Sole Lead Arranger and the Financial Advisor.
It is expected that, subject to market and other conditions, issuance, settlement, and listing on the Philippine Dealing and Exchange Corporation will be on March 31, 2021.
Standard Chartered Bank, Philippine Branch has been mandated as the Sole Lead Arranger and Bookrunner together with RCBC Capital Corporation as the Financial Advisor for this issuance of Bonds. The Selling Agents for the Bonds are SCB and RCBC.