RCBC OKs P27-billion capital infusion from Sumitomo Mitsui

Japanese giant Sumitomo Mitsui Banking Corp. (SMBC) is set to hike its stake in the Rizal Commercial Banking Corp. (RCBC) through a P27-billion capital infusion, the local lender announced Thursday.

In a disclosure to the local bourse, RCBC said its board on Thursday approved the increase in SMBC’s stake to 20% from 4.999% through the combined sale and subscription of 382.057 million common stock.

The transaction involves the sale of 213,437,248 common stock held as treasury shares, and the issuance of 168,619,976 new common stock at P71 apiece to SMBC.

This will translate to P27.126 billion of new Core Equity Tier 1 capital to RCBC, in line with its capital raising plan to support its long-term sustainable asset growth and investments in technology, cybersecurity, and human resources.

“The proceeds from the investment will allow the Bank to expand the core business in key customer segments — Corporate, SME and Consumer segments, and retail markets such as high net worth customers, mass affluent and mass market segments,” the disclosure read.

“SMBC’s strategic investment will also enhance the Bank’s digital plans and is expected to extend the reach of RCBC’s Sustainable Finance Framework,” it added.

RCBC has tapped Credit Suisse as the sole financial advisor for the transaction, with Clifford Chance and Romulo Mabanta Buenventura Sayoc & de los Angeles as legal advisor.

RCBC and its subsidiaries are engaged in all aspects of traditional banking, investment banking, retail financing, remittance, leasing, foreign exchange, and stock brokering.

Its subsidiaries include RCBC Capital Corporation, RCBC Securities Inc., RCBC Bankard Services Corporation, RCBC Forex Brokers Corporation, RCBC International Finance Limited, RCBC Microbank Inc., RCBC-JPL Holding Company, and RCBC Leasing and Finance Corp.

Shares in RCBC were trading up P2.70 or 12.11% at P25.00 apiece as of 10:54 a.m. on Thursday.—AOL, GMA News