RCBC slates P3-B sustainability bonds

Rizal Commercial Banking Corp. (RCBC) plans to issue fixed-rate peso-denominated sustainability bonds worth at least P3 billion.

In a bourse report, RCBC stated that the bonds will have a maturity period of two years and six months.

RCBC stated that it expects the debt papers to be classified under the ASEAN Sustainability Bonds, pending confirmation of this label from the Securities and Exchange Commission.

“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.

The offer period for the debt instruments is slated from 25 June to 9 July. The bank expects the bonds to be issued and listed on the Philippine Dealing and Exchange Corporation on 17 July.

The joint lead arrangers and bookrunners and selling agents for the bond offer are Standard Chartered Bank and RCBC Capital Corporation.

P200-B program

The sustainability bonds will be the eighth drawdown from the bank’s P200 billion Bond and Commercial Paper Program.

The announcement of the bond offer followed RCBC’s expansion of its sustainability portfolio to over P98 billion, representing more than 18,000 projects, as outlined in its 2023 Sustainability and Impact Report.

The bulk of the portfolio or over 40 percent was allocated to renewable energy projects which carry a total capacity of 944 megawatts and reduce carbon emissions each year by 977,211 tons.

RCBC also financed the deployment of 120 electric light rail vehicles.

The Department of Energy aims to expand the share of renewable energy to 35 percent of the country’s power mix by 2030 and to 50 percent by 2040.

The government agency also promotes the use of electric vehicles which is projected to increase to 2.5 million units in the country by 2028.