Sumitomo Mitsui to acquire 4.99% stake in RCBC for P4.48B

Rizal Commercial Banking Corp. (RCBC) on Tuesday said it has entered an agreement to sell a 4.99% stake to Japan’s Sumitomo Mitsui Banking Corp. (SMBC) for P4.48 billion.

In an emailed statement, RCBC said the agreement covers 101,850,000 treasury shares, with the proceeds to be used for lending activities.

“The proceeds from the investment will allow the bank to finance the different requirements of key customers in the corporate, SME, and consumer segments and expand the reach of its sustainable finance framework,” RCBC said.

SMBC ended the first quarter with $2.215 trillion in total assets and a capital adequacy ratio of 18.61%.

The company operates globally in retail, corporate, and investment banking with a presence in over 40 countries.

As a group, SMBC is involved in leasing, securities, credit card, investment, mortgage securitization, venture capital, and other credit-related businesses.

Meanwhile, RCBC is engaged in traditional banking, investment banking, microfinance, retail financing, remittance, leasing, foreign exchange, and stock brokering.

The Yuchengco-led lender said the partnership will enhance its efforts in digital solutions, in line with the Bangko Sentral ng Pilipinas’ (BSP) push for financial inclusion.

BSP Governor Benjamin Diokno wants at least half of all Philippine transactions done digitally by the end of his term in 2023.

RCBC tapped Credit Suisse as its sole financial advisor for the transaction, while Clifford Chance and Romulo, Mabanta, Buenaventura, Sayoc & de los Angeles served as legal advisors.

Shares in RCBC are trading at P24.50 apiece as of 12:30 p.m., up by P5.05 or 26.58% from Monday’s finish of P19.00. -MDM, GMA News