RCBC starts offering of Php 10- B Tier 2 Notes

MANILA, June 9 (PNA) – – Yuchengco-led Rizal Commercial Banking Corporation (RCBC) started Monday the offering of its Php 10 billion BASEL III-compliant unsecured subordinated Tier 2 notes.

Issuance of the 10-year, three –month paper was approved by the Bangko Sentral ng Pilipinas (BSP) on May 9, 2014.

In a disclosure with the Philippine Stock Exchange (PSE), the bank said offer period for the notes will run until June 20 and it will be issued on June 27.

The said paper has a redemption option after five years and three months.

Proceeds of the Tier 2 notes sale will be used by the bank to beef up capital and assets in line with the implementation of BASEL 3 in the Philippines since January 1, 2014.

RCBC tapped Deutsche Bank AG, Manila as sole arranger, bookrunner and selling agent for the debt paper.

Multinational Investment Bancorporation was also tapped as selling agent while RCBC will serve as a limited selling agent.

RCBC is the country’s fifth largest private commercial bank in terms of total assets.

At the end of the first quarter of the year, the bank’s capital reached Php 60 billion and its capital adequacy ratio (CAR), which is a gauge of the bank’s financial health, stood at 10.72 percent, higher than regulatory requirements. (PNA)