Makati–(PHStocks)–Rizal Commercial Banking Corporation (RCBC, PSE: RCB), rated Ba2 (Stable) / BB- (Stable) respectively by Moody’s and Fitch, returned successfully to the U.S. dollar bond markets, selling US$200 million worth of 5-Year Reg S Senior Unsecured Fixed Rate Notes.
The transaction represents the Bank’s inaugural drawdown off of its US$1 billion EMTN Programme established in September 2011. To date, RCBC is the only issuer in the Philippines with an EMTN Programme, providing it flexibility to access international capital markets through a variety of currencies and financial instruments.
The Notes priced at par with a coupon and yield of 5.250%. Given strong demand for the transaction, RCBC was able to revise initial price guidance from 5.375% area to 5.250% area. The Notes mature on January 31, 2017.
RCBC initially came to the markets seeking to raise US$150 million of new funding but upsized the transaction by US$50 million to a total issue size of US$200 million on the back of robust demand from investors globally, including strong support from onshore Philippine investors.
The Notes accumulated orders of US$390 million, almost 2x oversubscribed on the final deal size and almost 3x oversubscribed based on the initial deal size of US$150 million, from 54 accounts. The transaction was driven by demand from Asia and Europe, with allocations of 8% to Europe and 92% to Asia. By investor type, the split was 32% to asset managers, 65% to banks, and 3% to other investors.
The transaction marks RCBC’s successful return to the international capital markets after its senior debt offering in February 2010. The transaction was executed in line with RCBC’s objective of tapping opportunistic funding and taking advantage of the prevailing low interest rate environment.
The Notes are expected to settle on January 30, 2012 and will be listed on the Singapore Stock Exchange. Standard Chartered Bank acted as Sole Bookrunner for the transaction.