Rizal Commercial Banking Corporation (RCBC) successfully priced $350 million in five-year senior unsecured fixed-rate sustainability bonds, marking its return to the offshore bond market.
The issuance, part of the bank’s $4 billion Medium Term Note Program, is rated Baa3 by Moody’s and will mature on January 29, 2030, with a coupon of 5.375% per annum.
With a Baa3 rating from Moody’s, the bonds were issued at 99.279 and are set to settle on January 28, 2025. The bonds will be listed on the Singapore Exchange, further expanding RCBC’s global debt footprint. This follows the bank’s prior two U.S. dollar-denominated issuances.
Investor demand for the offering was robust, with the final orderbook oversubscribed by nearly three times, attracting over $1 billion in orders. , Initial price guidance was set at a spread of 145 basis points over the 5-year U.S. Treasury yield, but strong interest allowed RCBC to tighten the final price to 115 basis points. This marked the tightest pricing spread on any of RCBC’s U.S. dollar senior unsecured issuances.
The final allocation saw 57% of the bonds go to asset managers, 38% to banks, and 5% to insurance companies and private banks.
Proceeds from the issuance will be used to finance or refinance RCBC’s loans to customers or its own operations in eligible green and social categories, in line with the bank’s Sustainable Finance Framework.
