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 infrastructure projects.
“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
The Rizal Commercial Banking Corporation
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.