MANILA, Philippines - Rizal Commercial Banking Corp. (RCBC), the banking arm of the Yuchengco Group, has tapped Morgan Stanley as underwriter/financial advisor for its $130-million Tier 1 notes issue.
In a disclosure to the Philippine Stock Exchange (PSE), RCBC said it has also commissioned Credit Suisse as financial advisor for another $70 million placement of the Tier 1 notes.
“The board of directors, in its special meeting held on Sept. 27, 2012, approved the engagement of Morgan Stanley as financial advisor/underwriter for a public offer/exchange approximately $130 million in Basel three-compliant hybrid Tier 1 capital notes and Credit Suisse as financial advisor for private placement of $70 million of Basel three-compliant hybrid Tier 1 capital notes,” it said.
Basel 3 is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk.
RCBC has been showing steady growth with a 35-percent increase in net income in the first six months of 2012 to P3.01 billion from P2.23 billion in the same period last year.
Total operating income increased 15.52 percent to P10.76 billion as net interest income grew to P5.49 billion.
Non-interest income expanded 33.65 percent due mainly to trading gains, trust fees, service fees and commissions, and other income which totaled P5 billion or 95 percent of total non-interest income.
Deposits reached P240.87 billion as the bank continued to focus on growing