MANILA, Philippines — The Yuchengco-led Rizal Commercial Banking Corp. is making plans to issue as much as $1 billion worth of offshore debt paper to boost funds for expansion when global market conditions turn more favorable.
RCBC disclosed to the Philippine Stock Exchange on Monday its board of directors had approved a plan for the bank to establish a euro medium term note (EMTN) note program with a tenor of five to seven years.
Euro notes refer to the US dollar-denominated securities marketed and issued outside the United States.
RCBC treasurer Jose Emmanuel Hilado said in an interview that this was just to prepare the documentation requirements for the bank to be able to quickly launch a euro note offering if and when overseas conditions improve.
He added that the overseas issuance would take advantage of low interest rates in the offshore debt market. Such offering would be “opportunistic,” he said.
The last time RCBC braved the offshore debt market was in early 2010 when it successfully issued $250 million in five-year senior notes to strengthen its long-term liquidity position.