RCBC’s deposit notes issuance raises P3.58B

Yuchengco-led Rizal Commercial Banking Corp. has raised P3.58 billion from a fresh issuance of high-yielding deposit notes, proceeds from which will boost the bank’s expansion plans.

On Friday, RCBC issued long-term negotiable certificates of deposits (LTNCDs) at a coupon rate of 5.5 percent for a 5.5-year tenor.

This follows its P2.502-billion issuance of the same instrument in August 2017. Earlier this year, RCBC also raised a total of $450 million from the offshore bond market.

In a disclosure to the Philippine Stock Exchange yesterday, RCBC said this fund-raising was part of the bank’s “opportunistic” initiatives to maximize long-term funding.

“This latest LTNCD issuance provides us a competitive long-term funding base that will be used to support our growth objectives,” RCBC president and CEO Gil Buenaventura said in a statement.

HSBC is the sole lead manager and bookrunner for the deal.  It is also the selling agent with RCBC, RCBC Savings Bank and Multinational Investment Bancorporation.

RCBC saw a 4.3-percent year-on-year dip in its first semester net profit to P2.2 billion due to slower treasury earnings. Excluding the impact of trading gains, RCBC said core income grew by 47 percent year-on-year in the first semester.  Net interest income rose by 12 percent year-on-year to P9.7 billion.

The bank grew its loan book by 14 percent year-on-year to P372 billion.

Capital funds amounted to P68 billion, bringing its capital adequacy ratio to 14.52 percent and core tier 1 ratio to 11.6 percent, well above regulatory requirements.

The bank ended June with a balance sheet of P583.9 billion. Its branch network expanded to 509 from 495 a year ago. It has 1,597 automated teller machines.—DORIS DUMLAO-ABADILLA