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RCBC shortens bond offer window

AJ Bajo

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Rizal Commercial Banking Corp. (RCBC) is closing the public offer period of its two-year P3 billion fixed-rate bond offering on Wednesday, days earlier than the original offering end date of 27 March.

“The bank decided to shorten the public offer period in order to provide sufficient time for the submission of the documentary requirements in light of the logistical challenges given the enhanced community quarantine brought about by COVID-19,” RCBC disclosed to the stock exchange on Wednesday.

The Yuchengco-led listed lender said the move is part of efforts to “restore normalization in the capital markets and support business activity despite current execution challenges.”

But even with the shortened offer period, RCBC said orders reached more than double the original volume following the public offer period that began on 23 March, allowing it to raise more than its target size of P3 billion.

The offering, for which RCBC had the option to upsize, is the fourth drawdown from the bank’s P100 billion bond and commercial paper program which had a remaining unissued balance of P69.5 billion.

The bonds were priced at a fixed interest rate of 4.848 percent per annum, and were offered in denominations of P100,000 and increments of P10,000 thereafter.

RCBC intends to use the proceeds from the offering to support asset growth, re-finance maturing liabilities, and for other general funding purposes. It aims to list the bonds on the Philippine Dealing and Exchange Corp. on 7 April 2020, subject to market and other conditions.

Hong Kong and Shanghai Banking Corp. Ltd. was tapped as sole lead arranger and book runner for the issuance, together with RCBC Capital Corp. as the financial advisor. HSBC and RCBC served as selling agents.

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