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

In a disclosure to the Philippine Stock Exchange on Monday, RCBC said the bonds will carry a maturity period of two years and six months.

RCBC said it expects the bonds to be classified under ASEAN Sustainability Bonds pending confirmation for 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.

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

The announcement comes after RCBC expanded its sustainability portfolio to over P98 billion, representing more than 18,000 projects, according to its 2023 Sustainability and Impact Report.

Over 40 percent of the portfolio is allocated to renewable energy projects, which have a total capacity of 944 megawatts and reduce carbon emissions by 977,211 tons annually.

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

The bond offer supports the goal of the Department of Energy 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 are projected to increase to 2.5 million units in the country by 2028.