RCBC returns to foreign loan market, raises $400M

The Yuchengo family’s Rizal Commercial Banking Corp. (RCBC) expanded its portfolio of green and social loans with a fresh issue of sustainability bonds worth $400 million, raised on Jan. 10 amid overwhelming demand from overseas investors.The 5-year senior unsecured fixed-rate notes will pay 5.5 percent per annum and will mature on Jan. 18, 2029, the lender said in a stock exchange filing on Thursday.

RCBC said the bonds are part of its $3 billion medium-term note program.

“The transaction saw strong interest from a wide range of high quality Asian and European investors,” the bank said.Also, the notes represented price tightening of 30 basis points (bps) from initial price guidance as they were eventually priced at a spread of 165 bps over the 5-year US Treasury yield, RCBC added.

“It is worth noting that the final orderbook was 5.9 times oversubscribed at $2.3 billion, with orders from more than 164 accounts—clearly reflecting global investors’ continued confidence in RCBC and their positive outlook on the credit,” the bank said.

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Bond holders were comprised of asset managers (78 percent), banks (13 percent), official institutions, insurance and pension funds (6 percent) and private banks, security firms and brokers (3 percent).

Australia and New Zealand Banking Group Ltd., Citigroup Global Markets Ltd. and SMBC Nikko Securities (Hong Kong) Ltd. acted as joint bookrunners for the deal. —Miguel R. Camus INQ