IFC unit completes equity placement in RCBC

The International Finance Corp. (IFC) has completed its 5.6 percent equity investment in Rizal Commercial Banking Corp.(RCBC), covering 71.15 million RCBC common shares valued at P4.12 billion. The equity investment is in line with the  the terms and conditions private sector financial arm of the World Bank group and the Yuchengco-led bank last February, RCBC noted in a statement to the Philippine Stock Exchange. The shares were finally purchased in full by IFC Capitalization (Equity) Fund L.P. at P58 apiece last April 26.  IFC Capitalization is a global equity fund founded IFC and the Japan Bank for International Cooperation, and is managed by the IFC Asset Management Company LLC, a subsidiary of IFC. The transaction brought IFC investment in RCBC to 12.3 percent, which will shore up the bank's capital base ahead of the 2014 implementation of Basel III. With IFC as stakeholder in RCBC, the Makati City-based bank is expected to raise its lending to micro, small and medium enterprises and other underserved communities. “We are happy to receive this significant capital commitment from IFC, which will allow RCBC to comply with the Basel III capital requirements set for January 1, 2014,” RCBC president and CEO Lorenzo V. Tan earlier said. “The capital will be deployed to grow RCBC’s small and medium enterprise loan book and consumer loan book by 28 percent and 30 percent, respectively, this year,” he added. RCBC hired Credit Suisse as financial advisor to the transaction with IFC. Before the latest transaction was done, IFC owned $50 million worth of shares or 6.7 percent in RCBC. — VS,  GMA News