RCBC Lists ASEAN’s First Peso Green Bond on the PDEx BoursePosted on: February 1, 2019
01 February 2019, Makati Philippines – Rizal Commercial Banking Corporation (RCBC) started out this year’s listing activities in the local debt market, which marks two milestones for the Yuchengco-led bank. The PhP 15 Billion 18-month bonds are RCBC’s first-issued bonds and the first Philippine Peso Denominated ASEAN Green Bonds to be listed in the PDEx bourse.
The newly-listed green bonds were issued under RCBC’s Green Finance Framework which is the first green bond from the Philippines issued under the ASEAN Green Bond Standards 2018. It is also aligned with the International Capital Market Association’s (ICMA) Green Bond Principles 2018.
RCBC President Gil A. Buenaventura said “The issuance is also a positive step given the adoption of the ASEAN Green Bond Standards by the Securities and Exchange Commission of the Philippines in August 2018. With this first in the country initiative, RCBC affirms its commitment to support environmental sustainability in the Philippines through our operations, our partners and the businesses we serve.”
In his welcome remarks, PDEx President and COO Antonino A. Nakpil highlighted the ease of issuing bank-issued bonds, following a framework that is quickly proving to be a most efficient engine for issuances. “From 06 November 2018 up to today, we now have a total of PhP 79 Billion outstanding and listed bank-issued bonds from just four issuers, with each issue so far including RCBC, all oversubscribed.”
For his part, SEC Commissioner Ephyro Luis B. Amatong also commended the positive response of investors to RCBC’s green bonds. He said: “While RCBC is the first bank to issue a Green Peso Bond, and only the fourth bank to issue bonds under BSP Circular 1010, its ASEAN Green Bond was three times over-subscribed; and has achieved the lowest cost of borrowing of any bank so far, at 6.7315%, for its 1.5 year paper. It also appears that RCBC’s issuance has benefited from many of the ancillary advantages that Green Bonds are generally known to provide. One key benefit is a broadening of the investor base and higher visibility to ESG-oriented investors. I am told that, in this case, retail investors, particularly new retail investors, came out in force – comprising more than 60% of the issue.”
With this listing, RCBC’s cumulative level of outstanding fixed income securities listed shall be PhP 23.18 Billion. This also brings the total volume of bank issues listed on PDEx to PhP 264.09 Billion, increasing the total level of tradable corporate debt instruments to PhP 1.063 Trillion issued by 50 companies with 165 securities.
The event was held at the PDS Group Assembly Hall and was also graced by SEC Director Vicente Graciano Felizmenio, RCBC Deputy CEO Eugene S. Acevedo, RCBC Senior Executive Vice President and Treasurer Horacio E. Cebrero III, ING Bank N.V., Manila Branch Hans B. Sicat, and The Hongkong and Shanghai Banking Corporation Limited President and CEO Graham FitzGerald. #