RCBC global bond operations reach P115B

The global fixed income operations of the Rizal Commercial Banking Corp. (RCBC) reached an unprecedented $2.8 billion (P115 billion) in ROPs or Republic of the Philippines cash bonds, in the first nine months of 2007.

That brought RCBC among the top three local banks trading in global fixed income investment products, based on a recent survey done by Amstel Philippines and FIMAT Hong Kong, both independent money brokers.

RCBC executive vice president and Treasury head Sergio Edeza attributed their business expansion to some structural changes in his organization.

“Our performance got a significant boost from the talents we have recruited to form our new team. 

Their fresh insights and dynamism effectively combined with our existing players’ wealth of experience and drive to score these remarkable numbers,” Edeza said.

 The increase in trades was backed-up by a significant rise in trading gains for the year 2007. 

Profit targets were breached way before the year ended ($14.5 million or P600 million as of end-September).

Last year also saw the unit gaining the respect of numerous big name offshore players and brokers, including UBS and Merrill Lynch, proven by their counterparty bank visits during the year.

The global fixed income operations involves proprietary trading, investments, and servicing of client requirements through global distribution advisory.

Earlier, Fitch Ratings Ltd. revised its outlook on currency issues by RCBC from stable to positive.

The outlook increases the viability of the bank’s long-term foreign and local currency issuer default ratings (IDRs) as well as th long-term foreign and local currency IDR-BB minus, and individual D/E and Suport ‘3’.

In a statement, the RCBC said that the consummation to raise over P7 billion in fresh capital by mid-2007 through the issuance of 250 million new common stock shares via a public offering lead to the ratings upgrade.

RCBC is the country’s fourth largest capitalized private universal bank with more than 297 branches and five other extension offices nationwide. 

It is a strong player in the remittance business with presence overseas through remittance subsidiaries and tie-ups in North America, Europe and Hong Kong. RCBC is a member of the multi-industry conglomerate Yuchengco Group of Companies.