RCBC returning to bond market to raise P3B

Rizal Commercial Banking Corp. (RCBC) will again raise funds from the debt market to support sustainability projects, this time tapping its peso-denominated bond program.

In a stock exchange filing on Monday, the Yuchengco-led bank said it would raise at least P3 billion from a fixed-rate sustainability-linked bond issuance.

It has an option to upsize the offer in case of high demand.

“The funds to be raised from the offer will be used to finance or refinance, in whole or in part, the eligible green and social categories as described in the bank’s Sustainable Finance Framework,” RCBC said in its disclosure.

Under this framework, RCBC may use the funds to support projects related to renewable energy, green buildings, clean transportation, energy efficiency and pollution prevention and control, among others.

Under the social category, some of the eligible projects are those related to health care, education, employment generation and affordable housing.

The notes, which are part of RCBC’s P200-billion bond and commercial paper program, will have a tenor of two years and six months.

These will be offered from June 25 to July 9, with issuance and listing on the Philippine Dealing and Exchange Corp. scheduled on July 17.

RCBC has yet to finalize the offer price.

This comes ahead of an anticipated monetary policy easing during the Bangko Sentral ng Pilipinas’ rate-setting meeting later this month.

Rate cuts typically make fixed-income securities such as bonds more attractive, as these will have a higher rate and yield for investors.

The upcoming issuance also represents RCBC’s second sustainability-linked bond offer this year. In January, it raised $350 million from an offshore bond program.