Yuchengco-led Rizal Commercial Banking Corporation (RCBC) plans to raise fresh funds through a benchmark-sized offering of US-dollar senior unsecured sustainability notes via a drawdown under its $4 billion Medium Term Note Program.
In a disclosure to the Philippine Stock Exchange, the bank said it has prepared an offering circular dated Dec. 20, 2024, in accordance with the rules of the Singapore Exchange Securities Trading Limited.
The notes will be issued under RCBC's Sustainable Finance Framework. Fixed income investor calls are scheduled for today, Jan. 20, 2025, to market the proposed drawdown.
The bank has mandated ING Bank N.V., Singapore Branch; Morgan Stanley & Co. International plc; and SMBC Nikko Securities (Hong Kong) Limited as joint bookrunners for the offering.
RCBC has also engaged Allen & Overy as international legal counsel, Romulo Mabanta Buenaventura Sayoc & de los Angeles as domestic legal counsel, and P&A Grant Thornton as auditor.
RCBC reported a 31 percent drop in unaudited consolidated net income to P6.2 billion for the first nine months of 2024, compared to P9.03 billion earned in the same period of 2023.
However, 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 loan 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.
Consumer loans now represent 39 percent of the bank's total consumer portfolio, while corporate and SME portfolios constitute the remaining 61 percent.
The bank's ability to combine its core strengths with 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," said RCBC president and CEO Eugene S. Acevedo.
Capital ratios remained robust, with a Common Equity Tier 1 (CET1) ratio at 13.75 percent and a Capital Adequacy Ratio (CAR) at 16.31 percent, both well above regulatory requirements and supporting continued loan portfolio growth.