RCBC raises P20.5B via sustainability bond offer

Rizal Commercial Banking Corp. (RCBC) has raised P20.5 billion from its peso-denominated Association of Southeast Asian Nations sustainability bonds due 2029, marking its largest debt paper issuance to date.

In a statement, the Yuchengco-led bank said the Series G bonds, which carry a fixed coupon rate of 6.08 percent per annum, were listed on the Philippine Dealing and Exchange Corp. on Wednesday.

RCBC said strong demand from both retail and institutional investors drove the offer, with the order book exceeding four times the minimum issue size of P5 billion.

The bank completed the issuance within four days of the public offer period, which closed on March 17, ahead of the original timeline of March 27.

Proceeds from the bond sale will be used to finance or refinance eligible green and social projects under RCBC’s sustainable finance framework.

The issuance forms part of RCBC’s P200-billion bond and commercial paper program, representing the ninth time the bank has tapped the peso bond market.

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With this transaction, RCBC’s cumulative bond issuances since 2019 have reached P119.5 billion, underscoring continued investor confidence in its funding initiatives.

Standard Chartered Bank and RCBC Capital Corp. served as joint lead arrangers and bookrunners for the transaction, while both firms also acted as selling agents.

RCBC said the strong reception highlighted resilient demand for sustainable investment instruments as the bank continues to expand its funding base.