Manila, the Philippines, October 30,
2015—IFC, a member of the World Bank Group, was the anchor investor
in Rizal Commercial Banking Corp. (RCBC) issuance of $320 million 5.25-year
senior unsecured fixed-rate notes to help raise financing for Philippine
“Our investment in RCBC will allow
the bank to participate in funding much needed infrastructure projects
in the Philippines, as well as support the bank’s efforts in increasing
financial inclusion by providing access to financial services to SMEs,”
said Yuan (Jane) Xu, IFC’s country manager for the Philippines.
Recognizing the need for more and better
quality infrastructure in the Philippines, the government is ramping up
infrastructure spending from 2.6 percent of the country’s gross domestic
product in 2010 to a targeted 5 percent in 2016. After awarding 10 large
public-private partnership contracts over the last five years, the government
is now tendering the next wave of such projects, which will require massive
financing over longer tenors.
“The continued support of IFC, through
its commitment of up to $75 million dollars, was a key ingredient to the
success of RCBC’s bond issuance, with the participation of more than 100
domestic and international investors,” says RCBC President and Chief Executive
Officer Lorenzo Tan.
Acting as anchor investor for the bond
offer is the latest support provided by IFC to RCBC. In 2014, IFC lent
$30 million to RCBC to increase its financing of small and medium-size
enterprises, including women-led businesses, and spur job creation and
help support Yolanda-affected SMEs.
IFC is also helping RCBC design non-financial
services, strategies, and products for small and medium enterprises in
the Philippines. Non-financial services are value-added services that are
essential for the growth of SMEs, but are difficult for SMEs to access.
Strengthening SMEs creates jobs and diversifies the economic base.
IFC recently completed a project to
help develop RCBC’s Women in Business Program to significantly improve
the bank’s offering to women entrepreneurs. The project won the IFC CEO
Gender Award for IFC’s East Asia Pacific team.
IFC and the IFC Capitalization Fund
are shareholders of RCBC and have a total ownership stake of 7.71 percent
in the bank as of June 2015.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
The Rizal Commercial Banking Corporation
(RCBC) is one of the largest universal banks in the Philippines with
total consolidated resources of Php457.9 billion as of end-2014. As a diversified
financial services institution, RCBC serves corporate and individual banking
needs through the most appropriate vehicles to serve its chosen markets
with innovative products and services.