MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) has received the green light from the Bangko Sentral ng Pilipinas (BSP) to amend its articles of incorporation (AOI) and take in additional strategic foreign investors.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said the central bank approved on Aug. 26 a proposal 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.
The bank, owned by the family of the late taipan Alfonso Yuchengco, 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 AOI 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.
It said the regulator also approved the proposed amendment to Article 4 specifying the term of existence of the bank for another 50 years from Sept. 23, 2010.
Under the amendment, RCBC would have perpetual existence that is allowed under Republic Act 11232 or the Revised Corporation Code of the Philippines signed by then president Rodrigo Duterte in February 2019.
According to the bank, it filed the proposed amendments with the Securities and Exchange Commission (SEC) yesterday and the expected date of approval is on Oct. 6.
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) acquired close to a five-percent stake in Yuchengco-led Rizal Commercial Banking Corp. (RCBC) for 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.