1 month ago
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Yuchengco-led Rizal Commercial Banking Corporation is planning to raise fresh funds from a planned offering of benchmark-sized US-dollar senior unsecured sustainability notes via a drawdown under its $4 billion Medium Term Note Program.
In a disclosure to the Philippine Stock Exchange, the bank said it has prepared an offering circular dated December 20, 2024 for this purpose in accordance with the rules of the Singapore Exchange Securities Trading Limited.
The notes will be issued under the Sustainable Finance Framework of RCBC and the bank said that, in relation the marketing of the proposed drawdown, fixed income investor calls are scheduled today, January 20, 2025.
The bank said it has mandated ING Bank N.V., Singapore Branch; Morgan Stanley & Co. International plc; and SMBC Nikko Securities (Hong Kong) Limited to be the joint book runners for the planned offering.
Also tapped are Allen Overy Shearman Sterling LLP as international legal counsel, Romulo Mabanta Buenaventura Sayoc & de los Angeles as domestic legal counsel, and P&A Grant Thornton as auditor.
RCBC posted a 31 percent drop in unaudited consolidated net income to P6.2 billion for the nine months of 2024 from the P9.03 billion earned in the same period or 2023.
The Bank said its core income increased by 28 percent due to an 11 percent expansion of loans, and a general improvement in yields.
Loan expansion was primarily driven by the consumer segment, with Credit Card and Personal Loans receivables growing by 58 percent. Data science and digital innovations have contributed to the growth in customer and loan volumes.
Additionally, the auto loan portfolio grew by 39 percent as RCBC leveraged new marketing and sales strategies to expand its market reach.
While consumer loans now represent 39 percent of the Bank's total consumer portfolio, the Corporate and SME portfolios constitute the remaining 61 percent.
The Bank's ability to combine its core strengths with its innovative digital platforms has been key to the growth of the consumer loan portfolio.
"At RCBC, we are committed to fostering growth for Filipino consumers by leveraging digital solutions that make financial services more accessible and convenient," RCBC president and CEO Eugene S. Acevedo said.
Capital ratios remained robust, with CET1 at 13.75 percent and CAR at 16.31 percent, both well above regulatory requirements and supporting continued loan portfolio growth.
