RCBC sells senior notes

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RCBC has reopened its $300-million senior notes via a second tranche. — AFP

RIZAL Commercial Banking Corp. (RCBC) will offer a second tranche of its unsecured fixed rate notes worth $150 million this week under its medium-term note facility.

In a disclosure to the local stock exchange on Monday, RCBC said it has “reopened its $300 million 4.125% Senior Unsecured Fixed Rate Notes due 2023 via a second $150-million tranche drawdown off its $2-billion Medium Term Note (MTN) Programme.”

This brings the total issue size to $450 million, after raising five-year papers worth $300 million on March 9 with a coupon of 4.125%.

The new offer features a re-opening price of 98.762 “plus accrued interest from 15 March 2018, but excluding the issue date,” which is lower than the 99.892 in its previous offer.

RCBC said that the reopening yield for the second tranche would be 4.4084%.

The notes are rated Baa2 by Moody’s Investors Service and will be issued on April 27.

The lender said it will list the notes on the Singapore Exchange Ltd., with Deutsche Bank and UBS as joint bookrunners.

RCBC’s $2-billion MTN was expanded from $1 billion previously as it seeks to take advantage of “favorable market conditions.”

Banks usually employ a note facility to raise more capital to fund its programs and operation by issuing unsecured fixed rate notes.

RCBC saw its net income climb to P4.3 billion in 2017, up 11.4% from P3.9 billion in 2016.

RCBC shares closed at P41.10 apiece on Monday, down from P43.95 per share on Friday. — Elijah Joseph C. Tubayan