RCBC looks to redeem $300-M Tier 1 notes
RCBC looks to redeem $300-M Tier 1 notes – BusinessWorld Online
RIZAL COMMERCIAL Banking Corp. (RCBC) is looking to buy back $300 million in securities qualifying as Tier 1.
The bank’s board of directors on Monday approved the redemption of the five-year non-cumulative subordinated additional Tier 1 capital securities, which are callable starting Aug. 27, RCBC said in a disclosure to the stock exchange on Wednesday.
“The redemption of the capital securities remains subject to Bangko Sentral ng Pilipinas (BSP) approval and the terms and conditions of the capital securities,” it said.
RCBC in August 2020 raised $300 million from the Tier 1 notes, which carry a rate of 6.5%.
The proceeds were used to support and finance medium-term to long-term asset growth and other general corporate purposes, and to comply with and maintain sufficient buffers above the minimum capital thresholds required by the central bank.
RCBC’s attributable net income declined by 22.08% year on year to P9.52 billion in 2024 due to foreign exchange losses and the absence of one-off gains from the sale of assets a year earlier.
The listed bank’s shares rose by 30 centavos or 1.11% to close at P27.30 apiece on Wednesday. — Aaron Michael C. Sy
