MITSUBISHI BUYS INTO RCBC

Rizal Commercial Banking Corporation (“RCBC” or the “Bank”) announced that Sumitomo Mitsui Banking Corporation (“SMBC”) will sign definitive agreements with the Bank today to acquire 101,850,000 common shares of RCBC held in treasury, representing an approximately 4.99% stake in RCBC on a Pro-forma, post-transaction basis.

SMBC’s strategic investment which raises PHP4.48 billion (approximately USD93.9 million) of new Core Equity Tier 1 (“CET1”) capital for the Bank is part of the Bank’s capital raising plan to support long-term asset growth and digital investments.

The proceeds from the investment will allow the Bank to finance the different requirements of key customers in the Corporate, SME, and Consumer segments and expand the reach of its Sustainable Finance Framework. SMBC is one of the largest banks in Japan and is the commercial banking arm of Sumitomo Mitsui Financial Group (SMFG), with USD2,215 billion in total assets and a strong Capital Adequacy Ratio of 18.61% as of March 2021 on a group basis.

The investment in RCBC is in line with SMFG’s strategy to expand its business in the Asian region in general and the Philippines in particular.

The Transaction will be subject to the terms of the definitive transaction documents. Key Transaction Terms and Impact on Capital Ratios The key terms of the Transaction involve SMBC acquiring 101,850,000 common shares held in treasury at PHP44.00 per share for a total consideration of PHP4.48 billion (approximately USD93.9 million).

RCBC Parent Bank’s CET1 Ratio will improve from 11.01% to 11.75% as of 30 June 2021 on a Pro-forma basis.

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