Listed Rizal Commercial Banking Corp. (RCBC) looks to raise at least P3 billion from its latest fixed-rate bond offering.
In a disclosure on Monday, the Yuchengco-led lender said the two-year bonds would be offered at a fixed interest rate of 4.848 percent per annum.
The public offering began on Monday and will run until March 27, 2020, which may be shortened or extended in consultation with the sole lead arranger and the financial advisor.
RCBC also has the option to upsize the offer. Settlement is expected on April 7.
“The funds raised from the Bonds offer will be utilized to support asset growth, re-finance maturing liabilities, and other general funding purposes,” the bank said.
HSBC is the sole lead arranger and bookrunner, together with RCBC Capital as the financial advisor for this issuance of bonds. HSBC and RCBC are the selling agents.
The bonds will form part of its P100-billion bond and commercial paper program, with the remaining unissued balance at P69.5 Billion.
The issuance will be the fourth drawdown of the bond program. The lender first tapped the local bond market with its P15-billion Association of Southeast Asin Nations (Asean) green bond issuance in February 2019, followed by the P8-billion Asean sustainability bonds in June 2019, and another P7.5 billion in November 2019.
“The bank acknowledges the logistical and execution challenges given current conditions around Covid-19 (coronavirus disease 2019), and it is grateful to the parties involved in being able to set up its program documentation [on] March 17, 2020,” RCBC said.
It added that, by proceeding with the issuance, it was working toward conveying to the public that the capital markets remained open to support business activity.
RCBC shares decreased by 50 centavos or 2.94 percent to close at P16.50 on Monday.