IFC ups stake in RCBC

MANILA, Philippines - The International Finance Corp. (IFC) will invest in another $100 million worth of shares in Rizal Commercial Banking Corp. (RCBC), the financial arm of the Yuchengco family.

IFC currently owns $50 million worth of shares or 6.7 percent in RCBC.

In a disclosure to the Philippine Stock Exchange (PSE), RCBC corporate information officer Christina Alvarez said the bank’s board of directors also approved the appointment of Credit Suisse as financial advisor for the IFC private placement.

“The board of directors, in its special meeting held Jan. 4, 2013, approved the appointment of Credit Suisse as financial advisor for the issuance of $100 million in new common shares to the IFC through a private placement exercise,” Alvarez said.

The RCBC official added that the private placement would involve an option to purchase up to $15 million of the $10 million new common shares given to CVC Capital, one of the world’s biggest private equity funds.

IFC has been vocal in increasing its stake in RCBC as well as in other banks where it has shareholdings such as BDO Unibank Inc. and Planters Development Bank.

In 2010, IFC bought some $150 million worth of equity in BDO, a universal bank owned and managed by the family of retail tycoon Henry Sy. Sr. to spur the lending program of the unibank to small and medium enterprises.

IFC’s investment in BDO was made through the IFC Capitalization Fund and the IFC. The IFC invested $22.5 million and the IFC Capitalization Fund agreed to invest $127.5 million.

In 2002, IFC also invested $20 million in BDO.

Aside from BDO and RCBC, IFC also invested some P1 billion in equity, loans and grants in Planters Bank in 2000. Planters Bank is owned by the family of Amb. Jesus Tambunting.

IFC is the largest global development institution focused exclusively on the private sector. 

In 2011, IFC invested some $12.2 billion in 518 projects. It also  mobilized an additional $6.5 billion to support the private sector in developing countries.

This year, IFC is looking at investing some $400 million in various sectors, including pouring in capital in banks to help them meet the Basel III requirement.