Rizal Commercial Banking Corp., the country’s 6th largest lender by assets, has raised a record P20.5 billion from its Series G ASEAN Sustainability Bonds, underscoring strong investor appetite for Environmental, Social, and Governance-linked debt despite a volatile rate environment.
The peso-denominated bonds, due 2029 and carrying a fixed coupon of 6.08 percent, were listed on the Philippine Dealing and Exchange Corp. on Wednesday, April 8.
The issuance is the largest peso bond offering to date of RCBC, the banking arm of the Yuchengco Group. Demand significantly outstripped supply, with the order book reaching more than four times the minimum issue size of P5.0 billion. Strong subscription, driven by both retail and institutional investors, allowed the bank to upsize the offer and close it early on March 17, ahead of the original March 27 timeline.
The robust reception highlights sustained investor interest in fixed-income instruments offering stable returns, particularly as interest rates remain relatively elevated. It also signals growing traction for sustainability-themed investments in the Philippines, as issuers tap capital markets to fund environmentally and socially aligned projects.
Proceeds from the bonds will be used to finance or refinance eligible green and social initiatives under RCBC’s Sustainable Finance Framework. These may include projects supporting renewable energy, climate resilience, and inclusive economic growth.
The successful issuance positions RCBC to further deepen its sustainable finance portfolio while optimizing its funding mix. Analysts note that tapping the bond market at scale not only diversifies funding sources but also locks in medium-term financing at a fixed rate, providing some insulation against future rate volatility.
The deal also reinforces the broader momentum of ASEAN sustainability bonds, as Philippine issuers increasingly align capital-raising strategies with environmental, social, and governance objectives.
