RCBC signs deal selling 7.2% stake to WB-IFC

MANILA, Philippines—Rizal Commercial Banking Corp. signed a deal on Wednesday to sell about 73 million of its common shares to the World Bank group’s private investment arm International Finance Corp. for P29 per share, or a total block of P2.1 billion.

The sale of this initial 7.2 percent stake shall be followed by the sale of another 13.5-percent block to another foreign institution by May this year, in line with RCBC’s plan to raise up to P6.5 billion in additional tier 1 capital in 2011.

The first tranche of the block, equivalent to 50.43 million in treasury-held common shares, shall be crossed on the Philippine Stock Exchange on March 14 while the remaining 23 million shares, which shall be issued out of authorized capital, shall be listed within 60 days.