IFC hikes stake in Yuchengco-led bank
Yuchengco-led Rizal Commercial Banking Corp. is getting a fresh capital infusion of at least $100 million from the International Finance Corp., the private sector arm of the World Bank Group.
This transaction will expand IFC’s interest in RCBC to 12.7 percent, said John Deveras, head of strategic initiatives at RCBC.
IFC made its entry into the bank in 2011 with an initial interest of 7.2 percent, which entitled the multilateral organization a board seat in RCBC.
In a disclosure to the Philippine Stock Exchange on Friday, RCBC said its board had approved the private placement from IFC. In addition, IFC was given the option to buy up to $15 million out of the $100 million worth of new common shares earmarked for CVC Capital, another strategic investor in RCBC.
CVC Capital, for its part, will not increase its stake in the bank, Deveras said.
RCBC has tapped Credit Suisse as financial adviser for the private placement transaction.
This transaction is in line with IFC’s plans to increase its stake in the Philippine financial sector and the need for RCBC to raise core or tier 1 capital to prepare for Basel 3 capital adequacy requirements presented a good opportunity.
At present, IFC has a minority stake in two other banks—tycoon Henry Sy’s Banco de Oro Unibank, the country’s largest bank, and the Tambuntings’ Planters Development Bank, which is a leading player in small and medium enterprise lending.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94