Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has issued the initial price guidance at five-year US Treasury plus 145 basis points for its planned offering of benchmark-sized US-dollar senior unsecured sustainability notes.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said the notes, which will be a drawdown under its $4 billion Medium Term Note Program, will have a fixed rate coupon payable semi-annually and will be priced during European trading hours on Tuesday, Jan. 21.
RCBC also disclosed that the sustainability notes will be issued on Jan. 28, 2025 and will have a tenor of five years and one day. These will be listed at the Singapore Exchange Securities Trading Limited.
“The net proceeds from the issue of the Notes will be applied by RCBC to support and finance and/or refinance the RCBC’s loans to customers or its own operating activities in eligible green and social categories as defined in RCBC’s Sustainable Finance Framework,” the bank said.
The bank said earlier that in relation to the marketing of the proposed drawdown, fixed income investor calls were scheduled on Jan. 20, 2025.
RCBC has mandated ING Bank N.V., Singapore Branch; Morgan Stanley & Co. International plc; and SMBC Nikko Securities (Hong Kong) Limited to be the joint book runners for the planned offering.
Also tapped are Allen Overy Shearman Sterling LLP as international legal counsel, Romulo Mabanta Buenaventura Sayoc & de los Angeles as domestic legal counsel, and P&A Grant Thornton as auditor.
RCBC posted a 31 percent drop in unaudited consolidated net income to P6.2 billion for the nine months of 2024 from the P9.03 billion earned in the same period or 2023.
The bank said its core income increased by 28 percent due to an 11 percent expansion of loans, and a general improvement in yields.
Loan expansion was primarily driven by the consumer segment, with credit card and personal loans receivables growing by 58 percent. Data science and digital innovations have contributed to the growth in customer and loan volumes.
Additionally, the auto loan portfolio grew by 39 percent as RCBC leveraged new marketing and sales strategies to expand its market reach.
While consumer loans now represent 39 percent of the bank's total consumer portfolio, the corporate and SME portfolios constitute the remaining 61 percent.
The bank's ability to combine its core strengths with its innovative digital platforms has been key to the growth of the consumer loan portfolio.
"At RCBC, we are committed to fostering growth for Filipino consumers by leveraging digital solutions that make financial services more accessible and convenient," RCBC president and CEO Eugene S. Acevedo said.
Capital ratios remained robust, with CET1 at 13.75 percent and CAR at 16.31 percent, both well above regulatory requirements and supporting continued loan portfolio growth.