RCBC shortens offer period of peso-denominated green bonds

Rizal Commercial Banking Corp. (RCBC) has shortened the public offer period for peso-denominated green bonds.

“Rizal Commercial Banking Corp. has decided to shorten the public offer period that commenced on Jan. 21, 2019 to … Jan. 22, 2019 at 12:00 p.m.” RCBC said in a regulatory filing submitted by Corporate Planning head and information officer Ma. Christina Alvarez.

The P15-billion public offer was originally scheduled to close on Friday, January 25.

“The bonds are already oversubscribed, over three times, hence the shortened offer period,” RCBC said in a separate text message to GMA News Online.

The bank has set the issue date on Feb. 1, 2019. The bonds will be listed on Philippine Dealing Exchange.

The Yuchengco-led bank has set the coupon for its peso-deonominated ASEAN Green Bond at 6.7315 percent per annum.

The issuance has a tenor if 1.5 years under the bank’s recently established green finance framework, providing the basis for future issuance of green bonds and loans.

The bank is grateful to the institutional and retail investor for the take-up of its bond issuance, RCBC executive vice president and treasurer Horacio Cebrero III said in a separate mobile message. “This reflects their strong confidence on the credit outlook of the bank.”

The lender said its green finance framework under the ASEAN Green Bond Standards is the first in the Philippines.

ASEAN Green Bonds refer to bonds and sukuk or Islamic bonds that comply with the ASEAN Green Bond Standards. Proceeds from the bonds will be applied to finance or refinance, in part or in full, new and or existing eligible green projects.

RCBC said the net proceeds of the issue will be allocated to finance and refinance the bank’s loans to customers or its operating activities in green eligible projects such as renewable energy, green buildings, clean transportation, energy efficiency, and pollution prevention and control.

RCBC tapped Hongkong and Shanghai Banking Corp. and ING Bank Manila as transaction arrangers, with ING as sole green structuring advisor for the green finance framework. —VDS, GMA News