Robinsons Bank Enters the Bond Market

Through the bond offering, Rbank aims to raise P5 billion
by The JG Summit Team | Jun 26, 2019
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Robinsons Bank, the financial services arm of the JG Summit Group of companies, is entering the bond market, a move that is expected to increase its capacity to extend loans to its customers and improve the bank’s long-term funding position. The bank is currently the 18th largest in the Philippines in terms of asset size, with P120.8 billion as of March 31, 2019.

This coming July, Rbank is proposing a bond issue worth P2.5 billion with an oversubscription option of another P2.5 billion. The bond issue was given a PRS Aa minus rating by the Philippine Rating Services Corp, with a Stable Outlook.

According the rating company’s website, the PRS Aa is just a step below the highest possible rating, PRS Aaa. “A company rated 'PRS Aa' differs from the highest rated corporates only to a small degree, and has a STRONG capacity to meet its financial commitments relative to that of other Philippine corporates.” As the issuance has been given a stable outlook, investors are assured that the rating is likely to remain unchanged in the next 12 months.

In a statement it released regarding Robinsons Bank’s bond offering, Philratings said, “The diversity, market and financial strength of the JG Summit Group present Robinsons Bank with numerous opportunities, with the substantial size of the group providing a captured market for the bank’s various products and services.  Additionally, Robinsons Bank’s shareholders have demonstrated their strong financial support to the bank through recent capital infusions totaling P9.1 billion.”

The bond’s interest rate has not yet been announced, though it is expected to be based on the two-year Bloomberg Valuation Service reference rate, plus a spread. Interest  will be paid quarterly on a 30-360 day count. Investors can place a minimum of P50,000 with allowable increments of P10,000.

Robinsons Bank is owned by JG Summit Capital Services Corporation (60%) and Robinsons Retail Holdings, Inc. (40%).

For more information, visit Robinsons Bank at 17/F Galleria Corporate Center, EDSA corner Ortigas Avenue, Quezon City; or call the Customer Care Center (C3) Hotline: (02) 637-CARE (2273); c3@robinsonsbank.com.ph; www.robinsonsbank.com.ph; www.facebook.com/robinsonsbank; Twitter: @RbankCorp

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