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The Asian Legal Business (ALB) awarded the AT1 securities offering of Rizal Commercial Banking Corporation (RCBC) as the Debt Market Deal of the Year (Midsize). This recognition was given during the ALB’s 6th Annual Philippine Law Awards last November 19, 2021.
In August 2020, RCBC successfully issued a Reg S US Dollar-denominated Additional Tier 1 (AT1) securities with an aggregate principal amount of $300 million. The transaction is the first AT1 securities issuance of RCBC and also the very first offering of its kind in the Philippines.
The successful AT1 securities offering reopened the US Dollar AT1 bond market of Southeast Asia, following an issuance by another company that took place seven months prior to RCBC’s issuance.
RCBC senior executive vice president and head of Strategic Initiatives Jomi Deveras said that the deal raised funds to support and finance the bank’s medium to long-term expansion plans and other general corporate purposes.
“It also helped us comply and maintain sufficient buffers above the minimum capital thresholds required by the Bangko Sentral ng Pilipinas at the height of the pandemic last year,” Deveras added.
Furthermore, RCBC successfully priced the AT1 securities at 6.5 percent, or 25 basis points tighter than the initial price guidance.
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