Quantcast

RCBC raises $150 M to improve capital adequacy

By |



MANILA, Philippines–Rizal Commercial Banking Corp. has completed a $150-million equity deal meant to boost capital adequacy ahead of the implementation of the Basel 3 framework.

The $150 million worth of RCBC shares were sold at a price per share of P64 in an overnight deal that was 3.2 times oversubscribed, RCBC head of strategic initiatives John Deveras said on Thursday morning.

The deal was priced at a 4.5 percent discount to RCBC’s closing price of P67 per share on Wednesday.

Of the total issue, $100 million consisted of primary shares while $50 million were secondary shares, Deveras said.

This follow-on equity deal is part of the bank’s $430-million capital-raising strategy to prepare for stringent capital adequacy requirements under the Basel 3 framework, which introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extend the coverage of financial risks and have stronger firewalls against periods of stress.

The equity deal was arranged by Credit Suisse, Deutsche Bank, Macquarie Capital and Maybank ATR Kim Eng Financial Corp.

RCBC earlier signed a fresh $100-million equity infusion deal with International Finance Corp. and likewise unveiled plans to issue $130 million worth of Basel 3-compliant hybrid notes by the third quarter.

The bank grew its net profit last year by 24 percent to P6.21 billion on higher interest and fee-based income, and hefty treasury gains. This translated to a return on equity of 15.52 percent and a return on assets of 1.77 percent.


Follow Us






Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

  • http://profile.yahoo.com/SPLUBLEOSERDBOIJTDOC6XIWGU mxsclxmxn

    In the P100 BILL series 2012 Serial # ZK188477 has a logo of the Grand Lodge of Free and Accepted Masons. Freemasonry has its goal of destroying Christendom and replacing it with man-centered government and Satanic religion filled with errors. 
     
    How can this logo of a satanic group be allowed to print in the monetary instrument of the country with the constitution believing in a God asking for HIS Divine Providence?



Copyright © 2014, .
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
Advertisement
Advertisement
Marketplace