MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is returning to the offshore debt market via the issuance of benchmark-sized dollar senior unsecured sustainability bonds as part of its $4 billion medium term note (MTN) program.
In a disclosure to the Philippine Stock Exchange, the bank said it has prepared the offering in a circular dated Dec. 20, 2024 in compliance with the rules of the Singapore Exchange Securities Trading Limited.
The sustainability notes will be issued under RCBC’s Sustainable Finance Framework, reflecting the bank’s dedication to environmental, social and governance (ESG) principles.
The listed bank has mandated several financial and legal institutions to facilitate the drawdown. ING Bank N.V., Singapore Branch, Morgan Stanley & Co. International PLC and SMBC Nikko Securities (Hong Kong) Limited have been appointed as joint bookrunners for the transaction.
The legal counsel for the offering includes Allen Overy Shearman Sterling LLP as international counsel and Romulo Mabanta Buenaventura Sayoc & de los Angeles as domestic counsel.
P&A Grant Thornton will serve as the transaction’s auditors, ensuring compliance with regulatory and financial standards.
To facilitate the marketing of the sustainability bonds, RCBC scheduled fixed income investor calls on Jan. 20. These calls aim to provide investors with comprehensive insights into the offering, its structure and its alignment with RCBC’s broader sustainable finance strategy.
In October last year, RCBC increased the size of its MTN program to $4 billion from $3 billion previously in a strategic move to enhance its capital-raising capabilities.
In January 2024, the bank raised $400 million from its return to the offshore debt market after over three years as investors swarmed its sustainability note issuance.
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 reported a net profit of P6.22 billion in the first nine months of 2024, 31.1 percent lower compared to the P9.03 billion recorded in the comparable period a year ago.
For the third quarter alone, earnings of the Yuchengco-led bank dropped by 37 percent to P1.77 billion from P2.81 billion in the same quarter in 2023.