MANILA, Philippines - Yuchengco-led Rizal Commercial Banking Corp. said its board of directors has approved a rights offering of its common shares.
"(The) bank expects to raise proceeds of up to P4.5 billion from the rights offer. The proposed rights offer will allow the bank to strengthen its capital ratios under the Basel III standards and to support its asset growth," RCBC said in a disclosure to the stock exchange.
No additional details were given.
In November 2013, RCBC had announced it was targeting to raise between $100-$120 million in capital from the sale of new common shares.
In a report, COL Financial noted RCBC has the lowest capital adequacy ratios among the banks it monitors as of end March, as 10.7 percent for Tier 1 and 11.3 percent for total CAR.
Following the rights offer, COL Financial said it estimates RCBC's Tier 1 and total capital adequacy ratio to increase to 12.2 percent and 12.8 percent.