Allen & Overy has advised Credit Suisse (Singapore) Limited as Sole Global Coordinator in connection with the issuance by Rizal Commercial Banking Corporation (RCBC), one of the largest private domestic banks in the Philippines in terms of assets, of USD300 million Additional Tier 1 (AT1) capital securities. This is the first Basel III-compliant offshore regulatory capital issuance by a Philippine bank. This issuance also re-opened the U.S. dollar AT1 bond market in Southeast Asia after the most recent issuance in February this year.
The capital securities were offered in a Regulation S only transaction and listed on the Singapore Exchange Securities Trading Limited. The net proceeds of the issuance will be used by RCBC to support and finance medium-term to long-term asset growth, to comply with and maintain sufficient buffers above the minimum capital thresholds required by the Bangko Sentral ng Pilipinas and for general corporate purposes.
Partner John Lee commented: “We are extremely honoured to break new ground in offshore regulatory capital for Philippine bank issuers, which could hopefully open up new sources of regulatory capital for Philippine banks. Our experience and expertise in regulatory capital transactions in the region enabled us to advise on the resolution of various matters that arose during this landmark transaction.”
Counsel Giancarlo B. Sambalido added: “Our long-time and valued client RCBC continues to break new ground. We are extremely pleased to advise on this landmark offshore regulatory capital issuance after previously advising RCBC on its ground breaking U.S. dollar sustainability bond, which was also the first by a Philippine bank.”
The Allen & Overy team was led by partner John Lee and counsel Giancarlo B. Sambalido, with support from associates Grace Yumul-Villanueva and Hak Tae Kim.
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