RCBC to issue more sustainability notes

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) is tapping the offshore debt market early this year via the issuance of sustainability notes under its $3 billion medium-term note program.

Maria Christina Alvarez, corporate planning group head and corporate information officer at RCBC, said the senior unsecured sustainability notes would be issued under the sustainable finance framework of the Yuchengco-led bank.

Alvarez said the bank has mandated Australia and New Zealand Banking Group Ltd., Citigroup Global Markets Ltd. and SMBC Nikko Securities (HK) Ltd. as joint bookrunners.

RCBC’s Sustainable Finance Framework articulates its strategy to prioritize fund raising and lending to priority sectors that have clear environment and social benefits, foremost of which is clean energy.

The framework prescribes an exclusionary criteria, which identify certain projects as ineligible for the use of proceeds from the sustainable financing instruments, in particular fossil fuel power generation.

RCBC president and CEO Eugene Acevedo told The STAR that the bank would continue to look for opportunities in the debt market with the expected decline in interest rates.

“Given the downward trajectory of interest rates, issuing debt in 2024 looks more attractive than it did in 2023. We are closely monitoring market conditions in this regard,” Acevedo said.

He added that RCBC’s commitment to sustainability is grounded in the principles outlined in the United Nations Sustainable Development Goals and the Paris Agreement on Climate Change.

As of October 2023, he added the bank has around P35 billion sustainability bonds and green time deposits that are refinancing over 12,000 green and social projects.

“We supported clean energy, funding about three-GW of renewables since 2012,” Acevedo said.

According to Acevedo, RCBC’s environmental, social, and corporate governance (ESG) loan portfolio reached P87.8 billion.

“RCBC consistently grew its renewable energy portfolio over the past two years with new funding for multiple solar projects in the country,” he said.

The bank president added that RCBC has ceased funding new coal power projects in 2018.

“We are the first bank to officially declare that commitment in 2020. Our remaining exposure to coal-fired power projects will be zeroed out by 2031,” Acevedo concluded.