Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire over 101 million common shares of Rizal Commercial Banking Corporation (RCBC), representing a 4.99% stake in the company.

In a stock exchange filing on June 29, RCBC said SMBC’s investment raises P4.5 billion ($93.9 million) of new core equity tier 1 (CET1) or the primary funding source of RCBC. Part of the investment will be used to support the bank’s asset growth and digital investments.

“The proceeds from the investment will allow the bank to finance the different requirements of key customers in the corporate, SME (small and medium enterprise), and consumer segments and expand the reach of its sustainable finance network,” RCBC said.

RCBC added that the deal will improve its CET1 ratio from 11.01% to 11.75% on a pro-forma basis. Credit Suisse acted as sole financial advisor to RCBC, while Clifford Chance and Romulo Mabanta Buenaventura Sayoc & de los Angeles provided legal advice.

SMBC is one of the largest banks in Japan and is the commercial banking arm of the Sumitomo Mitsui Financial Group, which has over $2.2 billion in total assets.

Rappler