RCBC to take in more strategic foreign investors

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is looking at taking in additional strategic foreign investors as the company continues to explore various capital raising opportunities.

In a disclosure to the Philippine Stock Exchange (PSE), the listed bank said that its board of director approved the proposed amendments to its Articles of Incorporation last April 25.

It particular, the bank intends to delete Article 7, wherein the RCBC’s common shares of stock may be transferred to Philippine and foreign nationals provided that not less than 60 percent and not more than 40 percent of the voting stocks shall be at all times beneficially owned by Philippine nationals and by foreign nationals, respectively.

RCBC said the proposed amendment would allow foreign ownership of the bank to exceed 40 percent.

“RCBC management continuously explores various capital raising opportunities. Some of these opportunities include foreign investors. RCBC is amending its Articles of Incorporation in order to accommodate any capital to be provided in the future by a new/existing foreign investors into RCBC,” the bank stated in the disclosure.

Based on the bank’s 2021 annual report, total equity ownership of foreigners in RCBC’s common shares stood at 28.7 percent or 583.82 million common shares as of end-December.

Taipei-based Cathay Life Insurance Corp. has a 22.18 percent stake or equivalent to 452.08 million common shares.

In June last year, Tokyo-based Sumitomo Mitsui Banking Corp. (SMBC) has acquired close to a five percent stake in Yuchengco-led Rizal Commercial Banking Corp. (RCBC) for a total consideration of P4.48 billion.

Through multi-dimensional collaboration with RCBC, the second largest bank in Japan aims to accelerate its growth strategy in Asia while contributing further development of the Philippines’ financial industry.

The Yuchengco Group of Companies controls 50.11 percent of RCBC. These includes Pan Malayan Management and Investment Corp. with 39.64 percent, GPL Holdings with 4.03 percent, RCBC Retirement Plan with 2.54 percent, Malayan Insurance Co. with 2.3 percent, MICO Equities with 1.31 percent, Grepa Realty Holdings with 0.15 percent, RCBC Capital with 0.07 percent, Manila Memorial Park Cemetery with 0.6 percent, and House of Investments.

The bank’s board of directors also approved to delete Article 4, allowing RCBC to extend its corporate life for another 50 years from Sept. 23, 2010.

The amendment establishing the perpetual existence of the bank is allowed under Republic Act 11232 or the Revised Corporation Code of the Philippines signed by President Duterte in February 2019.