Rizal Commercial Banking Corp. (RCBC), the country’s sixth largest lender, has announced plans to issue fixed-rate peso-denominated bonds under its updated P200 billion bond and commercial paper program. This move signals the bank’s commitment to enhancing its capital structure and supporting strategic initiatives.
The funds raised from any bond issuance will be utilized for various purposes, including supporting asset growth, refinancing maturing liabilities, and other general funding needs. Notably, RCBC also intends to allocate a portion of the proceeds toward financing or refinancing new or existing sustainable projects, aligning with its sustainability goals under its established sustainable finance framework.
Under the updated bond program, RCBC will retain flexibility in structuring future offers. The bank may issue bonds in different forms, amounts, tenors, and tranches as market conditions evolve, with terms and interest rates determined at the time of issuance. This adaptability will allow the lender to optimize its funding strategy based on prevailing market dynamics and investor demand.
RCBC’s bond offering is seen as a key move to strengthen its liquidity position and support its growing portfolio. By diversifying its funding sources, the bank aims to remain agile in a competitive market while continuing its efforts to promote sustainable finance in line with its broader environmental, social, and governance (ESG) objectives.
