RCBC offers Asean bonds to raise at least P3B

Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is raising at least P3 billion through the sale of new domestic bonds under the Association of Southeast Asian Nations (Asean) sustainability bond framework.

RCBC is offering Asean bonds with 2.5- and 5.25-year tenors that are priced to yield 3.2 percent and 4.18 percent a year, respectively.

In line with the Asean sustainability bond principle, proceeds will support asset growth, refinancing of maturing liabilities and other general funding purposes as well as eligible loans as defined by RCBC’s sustainable finance framework.

This will mark RCBC’s sixth drawdown from its P100-billion bond and commercial paper program.

The public offering started on March 12 and will run until March 19 this year. The offer period may be shortened or extended by the bank in consultation with the sole lead arranger, Standard Chartered Bank (Stanchart), and the financial adviser, RCBC Capital Corp.

Asean Sustainability Bonds are bonds where the proceeds will be exclusively applied to finance or refinance a combination of both green and social projects that respectively offer environmental and social benefits. It is understood that certain green projects may also have social cobenefits, and certain social projects may have environmental cobenefits.

RCBC first tapped the local bond market in February 2019, when it raised P15 billion via an Asean green bond issuance, followed by an P8-billion Asean sustainability bonds issuance in June and P7.5 billion in November of the same year.

It sold P7.05 billion of these bonds in March last year and P16.6 billion in July.