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February 27, 2008 |
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RIZAL COMMERCIAL: Closes Offer of Unsecured Subordinated Debt On Feb. 22, 2008, Rizal Commercial Banking Corporation closed its second offering of unsecured subordinated debt eligible as lower Tier II capital, after completion of a two-week public offer period and domestic roadshows in Metro Manila and Cebu. The offering enjoyed good take-up from both institutional and retail investors, indicative of the Notes' appeal to a wide investor base. Subscriptions were received in excess of the maximum issue amount approved by the Bangko Sentral ng Pilipinas and allowed RCBC to issue a total of PHP7 billion of Notes. The Notes carry a coupon rate of 7.000% per annum and were issued at 100.00% of face value. The Notes will be used to refinance RCBC's first issue of lower Tier II capital, callable in July of this year, and to further strengthen RCBC's capital base. "I am glad with the investor turnout for our Capital Notes. This issuance will surely contribute to lowering the cost of funds of the Bank and boost the Bank's Capital Adequacy Ratio even higher," said RCBC President & CEO Lorenzo V. Tan. The Hongkong and Shanghai Banking Corporation Limited and ING Bank, N.V. (Manila Branch) acted as the Joint Lead Arrangers and Selling Agents. Multinational Investment Bancorporation also acted as Selling Agent. RCBC was Limited Selling Agent. HSBC, ING and MIB are Market Makers and HSBC is Public Trustee. Rizal Commercial Banking Corporation -- http://www.rcbc.com/ is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the bank's foreign exchange exposure. The Troubled Company Reporter-Asia Pacific on Feb. 8, 2008, reported that Fitch Ratings assigned a Long-term rating of 'B+' to Rizal Commercial Banking Corp's proposed issue of Philippine peso denominated subordinated notes due 2018, callable with step-up in 2013 of up to PHP7 billion. In Feb 4, 2008 report, TCR-AP said that Moody's Investors Service changed the outlook on RCBC's foreign currency hybrid tier 1 debt rating of B3 to positive from stable. The rating action does not affect the bank's B1 foreign currency long-term deposit ratings and foreign currency senior unsecured debt rating of Ba3, which maintain their positive outlook. The TCR-AP also reported on Oct. 24, 2006, that Standard & Poor's Ratings Services assigned its 'CCC' rating to RCBC's (B/Stable/B) US$100 million non-cumulative step-up callable perpetual capital securities. |
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