September 3, 2020

Milbank Advises on Philippines’ First-ever AT1 Issuance


Demonstrating its position as the go-to law firm for first-of-its-kind capital markets issuances, Milbank LLP represented Rizal Commercial Banking Corporation (“RCBC”) as issuer on its issuance of US$300 million 6.50% non-cumulative subordinated Additional Tier 1 (“AT1”) capital securities. The transaction marks both the first AT1 offering out of the Philippines and the first AT1 securities issuance of RCBC.

The transaction, which was highly subscribed, also reopened the US dollar AT1 securities market in Southeast Asia after the most recent issuance in February this year.

Universal bank RCBC is among the largest private domestic banks in the Philippines in terms of assets. RCBC is majority-owned by the Yuchengco Group of Companies, one of the oldest and largest conglomerates in Southeast Asia.

The Hong Kong-based Milbank team was led by partners James Grandolfo and Paul Pery, with associates York Wu and Cheyne Cudby. Partner James Warbey and associates Klaudia Mach and Chris Burke provided support from Milbank’s London office.

Mr. Grandolfo said: “We are extremely proud to have advised RCBC on this historical and highly successful issuance that also strengthens RCBC’s capital base in accordance with evolving regulatory capital requirements. We expect that other Philippine banks will use this transaction as a template for their own AT1 issuances.”

Mr. Pery added: “The transaction demonstrates the resilience of the Philippine capital markets despite volatile market conditions and also shows investors’ continuing confidence in RCBC.”