RCBC looks to raise at least P5B via sustainability bonds

RIZAL COMMERCIAL Banking Corp. (RCBC) is targeting to raise at least P5 billion from an offering of three-year fixed-rate ASEAN Sustainability bonds.

The planned issuance will be the ninth drawdown under the bank’s P200-billion bond and commercial paper program, which in 2022 was expanded from the P100 billion initially approved in 2019, it said in a disclosure to the stock exchange on Monday.

RCBC plans to hold the public offer period for the bonds from March 12 to March 26, subject to final management determination, market, and other conditions.

The bonds are expected to be issued and listed with the Philippine Dealing & Exchange Corp. on April 8.

“As part of the bank’s commitment to a greener and more sustainable future, the bonds will be used to finance or refinance, in whole or in part, the eligible green and social categories as described in the bank’s Sustainable Finance Framework,” RCBC said.

The Securities and Exchange Commission approved the bank’s application for an ASEAN label for the bond issuance on Feb. 23.

The bank has tapped Standard Chartered Bank (SCB) and RCBC Capital Corp. as the joint lead arrangers and bookrunners for the transaction, while the selling agents are SCB and RCBC.

RCBC last tapped the domestic market in July last year, raising P12.21 billion from an offering of ASEAN Sustainability Bonds, well above the minimum issue size of P3 billion amid strong demand. The notes have a tenor of two years and six months and carry a coupon rate of 6% per annum.

This brought total issuances under the bank’s peso fundraising program to P99.01 billion.

Meanwhile, the bank also raised $350 million from an offering of five-year sustainability bonds in January 2025. The notes were priced at 5.375% per annum and were issued out of its $4-billion medium-term note program and under its Sustainable Finance Framework.

RCBC’s net income rose by 11% year on year to P10.6 billion in 2025 on the strength of its core businesses.

Its shares dropped by 70 centavos or 2.8% to end at P24.30 each on Monday. — Aaron Michael C. Sy