Rizal Commercial Banking Corp. (RCBC) on Tuesday said it will exercise its call option on the bank’s $100-million hybrid Tier-1 notes.
The RCBC board of directors approved, in its meeting held on March 30, the early redemption of the bank’s $100-million 9.875-percent noncumulative step-up perpetual securities callable beginning October 27, 2016.
The early redemption is subject to Bangko Sentral ng Pilipinas (BSP) approval and the terms and conditions of the hybrid Tier-1 notes.
The perpetual securities were issued pursuant to a trust deed in October 2006 between RCBC and Bank of New York, London branch.
The bank issued the hybrid Tier-1 notes to beef up its capital ahead of the implementation of stricter capitalization requirements.
The net proceeds were to be used to strengthen the capital adequacy ratio of the parent company, repay certain indebtedness and enhance its financial stability and for general corporate purposes.