RCBC raises P4.96B with sale of 14% stake to CVC Asia Pacific

MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC) has raised P4.96 billion in Tier 1 capital with the sale of up to 14-percent equity to CVC Asia Pacific Ltd., a major private equity investor and a subsidiary of global player CVC Capital Partners Ltd.

The deal will entitle CVC Asia Pacific to two board seats in RCBC and raises the bank’s Tier 1 capital by P3.7 billion.

Last March, the International Finance Corp. (IFC), the investment arm of the World Bank, acquired a 7.2-percent stake in RCBC worth P2.1 billion (approximately $49 million). The acquisition entitled IFC to one seat in the 15-man board of the universal bank.

The equity sale of some 20-percent equity of RCBC completes its fund-raising exercise of roughly P6.5 billion this year, in line with capital expenditure requirements, acquisition as well as capital related to Basel II and Basel III international banking regulatory framework.CVC Asia Pacific Ltd. is a private equity firm specializing in acquisitions, focused mainly in the Asia Pacific region. Its preferences for acquisition are tiered companies with an enterprise value of between $100 million to $5 billion.

It was established in 1999 and is based in Central Hong Kong with additional offices in Beijing, China; Seoul, Korea; Singapore; Sydney, Australia; and Tokyo, Japan.

Earlier, RCBC president and chief executive officer Lorenzo V. Tan said that the fresh capital would be used for expansion and acquisition plans.

 “It will be used to fund our growth, fulfill all the requirements under the Basel III framework, fund possible acquisitions, or feed the bank’s organic growth,” Tan said.

RCBC targets an annual average of opening 15 branches in the next three years.

The universal bank of the Yuchengco Group of Companies presently operates a branch network of 356 and an automated teller machine (ATM) network of 609.