Rizal Commercial Banking Corporation (RCBC | PSE: RCB) has announced its intention to issue new peso-denominated bonds under its PHP200-billion Bond and Commercial Paper Programme. This move comes as part of a broader funding strategy aimed at supporting the bank’s growth, managing upcoming debt maturities, and financing eligible sustainable initiatives.
The program, which was originally launched in 2019 with a PHP100-billion ceiling, was expanded in 2022 to its current PHP200-billion cap. So far, RCBC has raised PHP86.8 billion from the program, with the most recent peso bond issuance completed in February 2022 amounting to PHP14.8 billion.
RCBC’s updated program allows the bank to offer unsecured and unsubordinated fixed-rate peso bonds in various tranches, depending on prevailing market conditions and internal approvals. There is no fixed schedule or structure for issuances; instead, the bank retains the flexibility to determine the form, amount, tenor, number of tranches, and interest rate of each offering.
This flexibility provides RCBC with a dynamic tool for liquidity and capital management. According to its disclosure, proceeds from future bond offerings will be used to:
- Support asset and loan growth,
- Refinance maturing liabilities,
- Address general funding needs, and
- Finance or refinance sustainable projects under its Sustainable Finance Framework (SFF).
This signals the bank's intent to maintain diversified funding sources while aligning with evolving investor expectations around environmental, social, and governance (ESG) considerations.
In recent years, RCBC has leaned more into sustainable finance — a trend reflected in both domestic and international markets. In January 2025, RCBC tapped the offshore market with a $350 million (approx. PHP20.45 billion) issuance of Senior Unsecured Fixed Rate Sustainability Bonds under its $4-billion Medium-Term Note Programme. These USD-denominated bonds are listed on the Singapore Exchange and rated Baa3 by Moody’s.
That global issuance complemented earlier efforts under the peso bond program. Notably, in February 2022, RCBC raised PHP14.75 billion via a 2.25-year ASEAN sustainability bond, also issued under its SFF. These offerings helped RCBC establish a credible ESG-linked funding track record — an increasingly important factor for institutional investors and international debt markets.
The announcement comes at a time when RCBC is signaling its intention to be a regular participant in both domestic and offshore capital markets. RCBC President and CEO Eugene Acevedo previously stated the bank’s goal of establishing a “constant presence” in capital markets — part of a long-term shift from sporadic issuance to more strategic and sustained fundraising activity.
This ongoing program is particularly timely, given potential interest rate inflection points and sustained credit growth in the Philippines. In the first quarter of 2025, RCBC posted a 10.26% year-on-year increase in attributable net income to PHP2.43 billion, driven largely by its growing consumer loan portfolio. Continued loan expansion requires a reliable funding base, especially as liabilities mature and as the bank expands into ESG-oriented lending.
The bank is also undergoing a key leadership transition, with Deputy CEO Reginaldo Anthony B. Cariaso set to succeed Eugene S. Acevedo, who is expected to retire this year. While transitions at the top can inject uncertainty, Cariaso's existing role suggests continuity in the bank’s current strategic and financial direction, including its focus on tapping bond markets for funding.
RCBC has not yet disclosed specific details for the next tranche — such as the issuance date, size, or coupon rate. These will be determined based on internal approvals and broader market conditions. For bond investors, some factors to monitor include:
- RCBC’s credit profile and ratings (its USD bonds are rated Baa3 by Moody’s),
- Market appetite for peso-denominated debt, especially amid inflation and interest rate movements,
- Sustainability alignment — as the bank continues to position its offerings under its Sustainable Finance Framework, offering opportunities for ESG-focused investors.
RCBC’s renewed activity under its PHP200-billion bond and commercial paper program is not just about raising capital — it reflects a broader shift in strategy. The bank is signaling its intent to be a regular participant in capital markets, sustain credit growth, and align its funding with global sustainability standards. For stakeholders, from retail investors to institutional bondholders, this sets the stage for more consistent and potentially ESG-linked investment opportunities from one of the country’s major universal banks.