Strong investor interest has emboldened the Rizal Commercial Banking Corp. (RCBC) to increase a syndicated loan program from a diverse group of international banks from an initial $200 million to $280 million on Monday.
RCBC Acting Treasury Group Head and concurrently Retail Banking Group Head Raul Victor Tan said the bank has received lending commitments from 18 international lenders distributed across Asia, Europe and the Middle East, including many first-time participants.
“The turnout from a diverse group of investors and the amount of participation contributed to the success of our recently concluded loan syndication. The loan syndication market is largely an untapped source of funding for local banks and offers a different set of investors. It could be an alternative to the usual bond market,” Tan told the BusinessMirror.
RCBC Division Head and Corporate Information Officer Ma. Christina Alvarez said the facility generated strong interest during general syndication and was oversubscribed, prompting RCBC to upsize the facility to $280 million from the initial size of $200 million.
RCBC will use the proceeds for general banking and corporate purposes.
The loan facility was arranged by Deutsche Bank AG and ING Bank.
During the first half of the year, RCBC posted a net income of P2.526 billion, 3.79 percent lower than the P2.625 billion restated income for the same period last year.
As required by Philippine Accounting Standards (PAS) 34 Interim Financial Reporting, the comparative 2014 financial statements have been restated to reflect the balances under Philippine Financial Reporting Standard (PFRS) 9. Without such restatement, net income for the period would have registered an increase of 25.31 percent. RCBC Group’s consolidated total resources was recorded at P468.717 billion in the first half, 2.36 percent higher than P457.905 billion as of end-December 31, 2014.
“Clearly, RCBC is on track. We are advancing on all fronts, from core lending to deposits to fee-based income. We are pleased with our first-half numbers but we will continue to double our efforts in satisfying our customers and shareholders,” RCBC President and CEO Lorenzo V. Tan said.
RCBC has 450 branches and 1,208 automated teller machines, or a 2.68 branch-to-ATM ratio, which is one of the highest in the industry.