RCBC’s sustainability bond issue 5 times oversubscribed
Rizal Commercial Banking Corp. announced the successful pricing and closure of a five-year $300 million bond issuance under its $2 billion medium term note program.
In a statement, RCBC said it received bids for more than five times what it expected to raise from the issuance of sustainability bonds.
Rated Baa2 by Moody’s, the notes were priced at 99.751 with a coupon of 3% per annum and a maturity date of Sept.11, 2024.
The transaction saw strong interest from a wide range of high quality Asian and European investors. The bonds were priced at the tight end of the guidance at a spread of 170 basis points over the 5-year US treasury yield.
RCBC said the strong demand for the bonds reflects global investors’ continued confidence in the bank and their positive outlook on the credit.
The orderbook was well diversified with 74% allocated to asset managers and fund managers, 18% to bank treasury and insurance and 8% to corporates, private bank and other investors.
Net proceeds from the offering will be used to refinance RBCC’s loans to customers and finance green and social projects.