MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is set to raise at least another P5 billion from the issuance of peso-denominated ASEAN sustainabilty bonds.
RCBC treasurer Horacio Cebrero said the bank is finalizing the timing of the planned fund raising activity.
Cebrero said the issuance of sustainability bonds shows the bank’s support to the government’s initiative in taking care of the environment.
Cebrero added RCBC raised P15 billion from the issuance of peso green bonds last January, the first green bond from the Philippines under the ASEAN greenbond standards 2018 and fully aligned with the International Capital Market Association’s green bond principle 2018.
The sustainable finance framework demonstrates RCBC’s strategy to deploy sustainable financing instruments to fund loans and its own projects that have clear environmental and/or social benefits.
Sustainable financing instruments include green bonds, social bonds, sustainability bonds, green loans, and other debt financing instruments which fund eligible green and social assets that conform to international and regional sustainable finance principles.
RCBC’s sustainable finance framework is aligned with the ASEAN Capital Markets Forum’s 2018 ASEAN green bond standards, ASEAN social bond standards, and ASEAN sustainability bond standards.
RCBC president and chief executive officer Gil Buenaventura said the bank affirms its commitment in supporting projects that would decrease environmental footprint of the Philippines, advance employment generation, and improve access to essential services of vulnerable groups in country.
“The bank believes that balancing non-financial factors such as environmental and social issues with financial priorities is essential to being a good corporate citizen and is fundamental to risk management and the protection of our investors and shareholders,” Buenaventura said.
Buenaventura said RCBC believes that good sustainable practices is a key pillar of responsible lending which can have a meaningful impact on the communities and the environment.
RCBC has mandated ING as the sole sustainable structuring advisor for its sustainable finance framework.
RCBC, a member of the Yuchengco Group of Companies (YGC), booked a 15 percent rise in earnings to P1.3 billion in the first quarter from P1.1 billion a year ago.