YUCHENGCO-led Rizal Commercial Banking Corp. is raising $125 million from the issuance of long-term offshore bonds.
Based on initial guidance, the 5.25-year bonds may be priced to yield 3.75 percent per annum.
Proceeds from the issuance will be used for “refinancing operations and general corporate purposes,” RCBC said in a disclosure to the local stock exchange.
The bank has mandated global banks BofA Merrill Lynch, HSBC and JP Morgan as joint bookrunners for the transaction.
The securities will be offered to foreign investors outside of the United States.
The bonds have been rated Baa3 (entry-level investment grade) by Moody’s and BB (two notches below investment grade) by Fitch Ratings.
These were drawn from RCBC’s $1 billion euro medium term note program which was established in September 2011. This program gives it flexibility to access international capital markets through a variety of currencies and financial instruments.