RCBC raises $200M from US bond markets

Rizal Commercial Banking Corp. raised $200 million from the US dollar bond markets. RCBC told the Philippine Stock Exchange on Friday that it sold $200-million worth of five-year Reg S Senior Unsecured Fixed Rate Notes, representing the bank's inaugural drawdown off of its $1 billion EMTN Programme established in September 2011. "To date RCBC is the only issuer in the Philippines with an EMTN Programme, providing it flexibility to access international capital markets through a variety of currencies and financial instruments," the bank said. EMTN is the Euro Medium Term Notes, which would allow RCBC to raise debt from capital markets through a series of bonds issuance. The notes were priced at par with a coupon and yield of 5.25 percent. RCBC said it was able to revise initial price guidance from 5.375 percent to 5.25 percent. The notes would mature in January 2017. "RCBC initially came to the markets seeking to raise $150 million of new funding but upsized the transaction by $50 million to a total issue size of $200 million on the back of robust demand from investors globally, including strong support from onshore Philippines investors," RCBC said. The bank added that the transaction was driven by demand from Asia and Europe, with allocations of 8 percent to Europe and 92 percent to Asia. By investor type, the split was 32 percent to asset managers, 65 percent to banks, and 3 percent to other investors. The transaction was RCBC's return to the international capital markets after its senior debt offering in February 2010. The transaction was executed in line with RCBC’s objective of tapping opportunistic funding and taking advantage of the prevailing low interest rate environment. The Notes are expected to settle on January 30, 2012 and will be listed on the Singapore Stock Exchange. Standard Chartered Bank acted as Sole Bookrunner for the transaction.  -- CMA/OMG, GMA News