The Rizal Commercial Banking Corp. (RCBC) announced on Thursday it is braving the domestic bond market anew despite measures against the coronavirus pandemic potentially dampening investor appetite.
In a disclosure, the Yuchengco-led bank announced it plans to issue fixed-rate peso bonds within the year.
This would be RCBC’s fifth tranche under its P100-billion bond and commercial program.
“The final terms will be determined prior to the launch of the issue depending on market and other conditions,” the listed bank said.
The allocation of proceeds was not yet disclosed as well.
In April, the bank listed its P7.05-billion fixed-rate bonds in Philippine Dealing and Exchange Corp., noting that a strong demand from investors allowed its offering to be oversubscribed by more than two times. Proceeds of the fixed rate bond offering are allocated to finance asset growth, maturing obligations and other general corporate matters.
Each bond has a tenor of two years and carries a coupon rate of 4.848 percent per annum.
Since RCBC launched its bond program—which is aimed at diversifying its funding base—last year, the company has raised a total of P37.55 billion already.
The Yuchengco-owned lender first participated in the local bond market through its P15-billion Association of Southeast Asian (Asean) green bond issuance last year. This was followed by two more Asean sustainability bonds amounting to a total of P15.5 billion in the same year.
RCBC reported its net income grew by 77 percent to P2.3 billion while gross revenues rose by 23 percent to P10 billion in the first three months.
Its topline figures were driven by net interest income and non-interest earnings, which climbed by 19 percent and 29 percent, respectively.
The bank increased its nonperforming loan coverage ratio to 76.2 percent in the first three months from 67.3 percent year-on-year to provide enough buffer for potential losses amid the pandemic. RCBC did not disclose how much reserve was set aside for the period.
Shares in RCBC slid by 1.10 percent, or 20 centavos, to close at P18 each amid the 1.06-percent rise for the benchmark index on Thursday.