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RCBC offers first tranche of P20-B LTNCD program

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RIZAL COMMERCIAL Banking Corp. (RCBC) has started its offer the first tranche of its P20-billion long-term negotiable certificates of deposit (LTNCD) program to raise funds.

In a regulatory filing on Monday, the Yuchengco-led bank said it will raise an undisclosed amount from the peso-denominated issue.

The issuance constitutes the first tranche of its P20-billion LTNCD program approved by the central bank last July 12.

The notes being offered will mature in five years and six months.

RCBC started offering the debt papers yesterday, with the sale to run until Sept. 21. The issue and listing date is targeted for Sept. 28.

The Hongkong and Shanghai Banking Corp. Ltd. will serve as the sole lead manager of the offer. It will also act as a selling agent alongside Multinational Investment Bancorporation, RCBC and RCBC Savings Bank.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

In June, RCBC raised P15 billion through a stock rights offer to strengthen its capital ratio and fund its business expansion. It also offered the second tranche of its senior unsecured fixed-rate notes worth $150 million in April under its medium-term note facility.

A number of banks have been tapping the capital markets in recent months to raise more funds ahead of tighter risk management measures that will take effect on Jan. 1, 2019 under the international Basel 3 standards.

RCBC posted a P2.2-billion net income in the first semester, down 6.4% from a year ago.

Shares in RCBC closed unchanged at P27.65 apiece on Monday. — K.A.N. Vidal