RCBC To Issue Fixed Rate Sustainability Bonds Under PHP100B Bond, Cml. Paper Programme

Rizal Commercial Banking Corporation (“RCBC” or the “Bank”), one of the largest banks in the Philippines, will be returning to the domestic bond markets with its planned offer of Fixed Rate Peso Sustainability Bonds (the “Bonds”), which will be the seventh tranche of its PHP100 Billion Bond and Commercial Paper Program (the “Programme”).

Photo Insert: RCBC Plaza is the company's primary base of operations.

The Bonds, which are intended to be issued as sustainability bonds under the ASEAN Sustainability Bond Standards subject to confirmation from the Securities and Exchange Commission, will have a tenor of two years and three months (2.25 years) from the date of issuance.

The Bank is looking to raise at least PHP3.0 Billion, with an option to upsize. The funds to be raised from the offer will be used to support asset growth, refinance maturing liabilities, and other general funding purposes in line with the Bank’s Sustainable Finance Framework.

As it continues to raise funding allocated for sustainability assets whenever there is an opportunity, RCBC shows its commitment to providing the investing public a way to participate in these types of assets when available.

This fundraising exercise encourages both borrowers and lenders to join the push of the country and the global community towards making the world that we live in greener and sustainable.

The Bank’s Sustainable Finance Framework has been certified by Sustainalytics, a leading independent Environmental, Social, and Governance research and ratings provider, to ensure that the use of proceeds are aligned with those recognized by the Green Bond Principles 2018, the Social Bond Principles 2018, the Sustainability Bond Guidelines 2018, and the ASEAN Sustainability Bond Standards.

The Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) has been mandated as the Sole Lead Arranger and Bookrunner together with RCBC Capital Corporation as the Financial Advisor for this transaction. Selling Agents will be HSBC and RCBC.

The offer is slated to commence on January 31, 2022, and will run until February 11, 2022, unless shortened or extended by the Bank.

RCBC has raised an aggregate of PHP72.04 Billion since 2019, with the last offering completed in March 2021 amounting to PHP17.87 billion.

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