• RCBC unloads stake from property firms

    0

    To pave the way for its preparation for compliance with stricter Basel 3 capital guidelines, the Yuchengco-led Rizal Commercial Banking Corp.

    is unloading its stake from its property arm RCBC Realty Corp. and RCBC Land Inc.

    In a disclosure to the Philippine Stock Exchange, the bank reported

    that its board has approved the sale of its 25-percent shareholdings in RCBC Realty and 49-percent stake in RCBC Land to Pan Malayan Management and Investment Corp. (PMMIC), House of Investments Inc. (HOI) and RCBC Land.

    The combined stake that was put on sale represents the bank’s 34.8-percent economic interest in RCBC Realty.

    “RCBC has decided to sell its economic interest in RCBC Realty in order to prepare for compliance with the Basel 3 capital guidelines,” the disclosure said.

    Earlier this year, the board of RCBC approved the firm’s plan to offer up to $130-million worth of hybrid note entitled as tier 1 capital under the Basel 3 capital adequacy ratio (CAR) framework.

    In a disclosure to the local bourse in March, RCBC explained that this offer will be part of its regulatory compliance to the Basel 3 capital guidelines of the Bangko Sentral ng Pilipinas.

    Further to that, the RCBC board issued authority to seek for financial and other institutions to offer, issue, service and redeem these hybrid notes.

    Morgan Stanley and Co. International Plc. was then chosen as the dealer manager, while the Bank of New York was named as trustee and agent bank for the transaction.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.