Rizal Commercial Banking Corp. (RCBC) is raising at least P3 billion as it returns to the onshore debt market via the issuance of conventional or sustainability bonds.
In a disclosure to the Philippine Stock Exchange, the bank said the proceeds of the fund-raising activity would be used to support asset growth, refinance maturing liabilities and supplement other general funding purposes. “The terms and timing of the proposed bonds transaction will be determined subject to the bank’s requirements and prevailing market conditions,” RCBC said.
This is the fourth time RCBC is issuing green or sustainability bonds as part of its P100-billion bond and commercial paper program launched in July 2019. The last time RCBC tapped the domestic debt market was in March 2021 when the bank raised P17.87 billion via the issuance of 2.5-and 5.2-year fixed-rate ASEAN sustainability peso bonds.
RCBC’s net income soared by 33.3 percent to P5.34 billion in the first nine months in 2021 after a strong third quarter as business momentum continued to accelerate amid the gradual reopening of the economy with the steady decline in COVID cases. RCBC’s total assets increased by 19 percent to P872.97 billion. Its capital booked a 10.1 percent growth to P109.59 billion, translating to a capital adequacy ratio of 15.2 percent and a common equity tier-1 ratio of 12.1 percent.
Bangko Sentral ng PIlipinas Governor Benjamin Diokno expects Philippine banks to issue more green, social and sustainability bonds to help raise funds to bankroll environment-friendly projects. Amid the COVID-19 pandemic, the BSP chief said two banks have issued social bonds worth approximately P29 billion to finance the needs of eligible micro, small and medium enterprises (MSMEs).