RCBC infuses P750 M additional capital to units

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) is infusing P750 million worth of additional equity in two subsidiaries after getting the green light from the Bangko Sentral ng Pilipinas (BSP).

RCBC corporate information officer Ma. Christina Alvarez informed the Securities and Exchange Commission (SEC) the BSP has approved the bank’s request to subscribe to additional shares of RCBC Leasing and Finance Corp. (RLFC) and Merchants Savings and Loan Association Inc. (MCSLA).

Alvarez said RCBC is infusing P500 million to RLFC by subscribing one billion common shares with a par value of P0.50 per share and another P250 million to MCSLA through the acquisition of 2.5 million shares with a par value of P100 per share.

The bank announced last Monday it is raising $400 million from the issuance of senior notes out of RCBC’s $1 billion medium term note program for general bank and corporate purposes.

RCBC also intends to undertake a bond exchange of its $275 million senior notes due 2017.

RCBC said the issuance of senior notes and the bond exchange would be subject to favorable market conditions and other considerations.

Earlier, the bank announced it has closed and signed a three-year $280 million syndicated loan facility with a diverse group of international banks.

Lending commitments were received from 18 international lenders distributed across Asia, Europe, and the Middle East including many first time participants in RCBC’s syndicated loans.

Earnings of RCBC went up 25 percent to P2.53 billion in the first half from P2.02 billion in the same period last year on the back of the bank’s expanding lending business.

RCBC reported its net interest income reached P7.45 billion and accounted for 63 percent of the bank’s gross income that went up by 12.4 percent to P11.8 billion.

It pointed out its 4.2 percent annualized net interest margin remains one of the highest in the banking sector.

Furthermore, the bank said its loan book excluding interbank loans grew 18 percent to P275.7 billion. The interest income from its lending business contributed 83 to the bank’s total interest income.

The bank booked a 20 percent increase in corporate loans as well as an 18 percent rise in consumer loans.

Likewise, loans to small and medium-sized enterprises (SMEs) surged 30 percent in the first half of the year while microfinance lending through Rizal Microbank zoomed 46 percent.