Bracing for a rapid growth in lending activity in line with the country’s expanding economy, Yuchengco-led Rizal Commercial Banking Corp. (RCBC) raised $300 million from the sale of five-year debt notes and is raising another $300 million (P15 billion) from the sale of new shares to existing investors by June.
RCBC president Gil Buenaventura said the proposed stock rights offering would complement the bond offering. “All this fundraising is meant to support the anticipated double-digit growth in loans,” he said.
For the first time since 2015, RCBC tapped the overseas bond market with the issuance of five-year bonds that were priced to yield 4.125 percent a year.
“This is clearly a reflection of how investors feel about the positive fundamentals of RCBC going forward,” RCBC head of treasury Chester Luy said in a briefing yesterday.
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The order book was strongly supported by a broad base of accounts, including asset managers, insurance companies, sovereign wealth funds, banks and private wealth managers. It was oversubscribed by 1.8 times the base offer.
About 97 percent of the issuance was taken up by investors in the Philippines and Asia.
