SECURITY BANK Corp. has raised P20 billion from its offering of five-year fixed-rate peso corporate bonds, four times as much as its initial target, amid robust investor demand, it said on Tuesday.
“Security Bank raised P20 billion worth of bonds… This is the largest issue size of the bank to date. Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above its minimum P5-billion issue size,” the listed lender said in a disclosure to the stock exchange.
“We’re humbled by the overwhelming response to our bond offering, which reflects the strong trust and confidence of our investors in Security Bank and our BetterBanking promise. We’re grateful for their support and will strive to keep delivering value to our clients and stakeholders,” Security Bank Executive Vice-President and Financial Markets Segment Head Arnold Q. Bengco said.
Proceeds of the bond issuance will be used to diversify the bank’s funding sources and support its lending activities, the lender said.
The notes, which have a tenor of five years and one month, were priced at 6.05% per annum.
The offer period for the five-year papers ran from July 8 to Aug. 5. The offering was originally set to end on Aug. 13 but was closed early “as volume significantly exceeded target.”
Philippine Commercial Capital, Inc. and SB Capital Investment Corp. were the joint bookrunners, joint lead arrangers, and selling agents for the issuance.
Security Bank issued the bonds and listed them on the Philippine Dealing and Exchange Corp. on Tuesday.
The papers were issued out of the bank’s P200-billion peso bond and commercial papers program.
Security Bank last tapped the domestic bond market in July 2023, where it raised P18.5 billion from the issuance of 1.5-year fixed-rate corporate bonds due 2025.
The lender’s net income rose by 10.19% year on year to P2.82 billion in the second quarter amid higher revenues.
Security Bank’s shares closed at P61.30 apiece on Tuesday, declining by 70 centavos or 1.13%. — A.M.C. Sy
