Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is set to retire $275-million worth of bonds, lowering its debt stock and cost of funding.
In a press statement, RCBC announced that it settled on Jan. 31 its 5.25-percent, $275 million in senior unsecured bond without the need for refinancing.
RCBC president and chief executive officer Gil Buenaventura said: “RCBC’s solid liquidity position allowed it to completely satisfy this financial obligation. In addition to the bank’s significant liquidity position, lowering cost of funding was also a major consideration. Paying down higher-cost debt is a key priority in light of this important objective.”
Moving forward, the bank said it would continue to be “opportunistic” in exploring low-cost funding alternatives.
As of the first nine months of 2016, RCBC’s annualized net interest margin stood at 4.12 percent, better than most of its banking peers.
RCBC’s total consolidated assets stood at P504.35 billion as of end-September 2016. Its distribution network consists of 481 branches and 1,488 automated teller machines. —DORIS DUMLAO-ABADILLA