RCBC expands dollar bond program to $4 billion

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) has increased the size of its medium term note (MTN) program to $4 billion from $3 billion previously in a strategic move to enhance its capital-raising capabilities.

In a disclosure to the Philippine Stock Exchange, RCBC said that along with the increase in its MTN program, it has appointed SMBC Nikko Securities (Hong Kong) Ltd. as the program arranger.

RCBC also announced its intention to issue foreign currency-denominated bonds out of the enhanced MTN program.

While specific details regarding the timing and structure of the issuance have yet to be confirmed, the bank has indicated that the move is contingent on market conditions and other strategic factors.

The expansion reflects the bank’s commitment to diversify funding sources and address potential market demands.

Earlier in January, RCBC raised $400 million from its return to the offshore debt market as investors swarmed its sustainability note issuance.

The Yuchengco-led bank said the final order book was 5.9 times oversubscribed at $2.4 billion, reflecting global investors’ continued confidence in RCBC and its positive outlook on credit.

The orders from more than 164 accounts were well diversified, with 78 percent allocated to asset managers, 13 percent to banks, six percent to official institutions, insurance companies and pension funds, as well as three percent to private banks, security firms and brokers.

The bank issued five-year senior unsecured fixed rate sustainability bonds under its then $3-billion medium term note program, with a coupon rate of 5.5 percent per annum.

RCBC earlier said the proceeds from the fundraising activity would be used to support, finance and refinance RCBC’s loans to customers or to its own operating activities in eligible green and social categories as defined in the bank’s Sustainable Finance Framework.