RCBC to raise P12B from fresh stock rights offer
The bank’s biggest stockholders have committed to buy more shares.
The Rizal Commercial Banking Corp. (RCBC) announced that it will be issuing P12 billion in common shares, following board approval on Monday, Jan. 29.
In a disclosure, the bank told the local bourse that it will be increasing the number of common shares to P2.6 billion, with a par value of P10 per share. This will bring the total authorized capital stock of RCBC to P28 billion, coming from P16 billion.
“The increase in authorized capital stock is in preparation for future capital raising activities of the Bank to support its growth plans,” RCBC said.
“RCBC believes it is well positioned to capitalize on economic growth in the Philippines, which the Bank expects to be conducive to further loan expansion across industry segments and consumer spending.”
The listed lender wants to increase lending for the retail segment, as well as small-scale firms, the middle market, and microfinance. The fresh capital will also fund digital upgrades.
The bank won’t have a hard time looking for fresh funding, as both the Yuchengco Group of Companies and Taiwan’s Cathay Life Insurance Company Ltd. — the two largest shareholders of the bank, committed to buy additional shares in RCBC.