RCBC ends offer period for re-opened Tier 2 Note

MANILA, Aug. 28 (PNA) — Strong demand for Rizal Commercial Banking Corporation’s (RCBC) re-opened 10-year unsecured unsubordinated Tier 2 Notes made the bank close the offer period for the debt paper Thursday, ahead of the September 1, 2014 deadline.

In a disclosure with the Philippine Stock Exchange (PSE), RCBC SVP Carlos Mercado said there was overwhelming demand for the debt paper.

RCBC targeted to sell up to P3 billion worth of the debt paper from August 26 to September 1.

However, offers exceeded expectations, thus, the decision to end the offer period early.

”We are grateful for the support and confidence from our clients, who have helped make this offering a success,” Mercado added.

This exercise made the bank maximize the P10 billion regulatory authority it got vis-à-vis the Notes offering.

RCBC has issued P7 billion worth of the said Notes, which has an interest rate of 5.375 percent and a call option after five years, on June 27, 2014.

Deutsche Bank AG served as the selling agent, sole arranger and book runner for the issuance.

RCBC, which is a limited selling agent for this offer, also tapped Multinational Investment Bancorporation as additional selling agent.

Aside from increasing the bank’s capital, issuance of the Tier 2 Notes is targeted to support the bank’s capital adequacy ratio (CAR), which is a gauge of a bank’s financial health.

As of end-June 2014, the bank’s CAR stood at 13.8 percent, higher than the central bank’s 10 percent requirement.

During the same period, the bank, which is the sixth largest domestic commercial bank in terms of assets, posted a capital of P67.6 billion. (PNA)