Security Bank targets to raise P5 billion from bond issue

MANILA, Philippines — Security Bank Corp. is raising at least P5 billion as it returns to the domestic debt market through the issuance of fixed-rate peso-denominated bonds.

In a disclosure to the Philippine Stock Exchange, the bank said it would offer the 5.1-years bonds with a fixed-rate of 5.7 percent per annum until Aug. 13.

The bonds will be listed on the Philippine Dealing & Exchange Corp. (PDEx) on Aug. 20 to provide secondary market liquidity to investors who would like to trade the instruments.

“We are excited about this peso bond offering, which will support our strategic initiatives and diversify our funding sources,” Arnold Bengco, executive vice president and financial markets segment head at Security Bank, said.

“We are confident this offering will deliver value to our clients looking to invest in a high-quality instrument with attractive returns,” he added.

The bank has tapped Philippine Commercial Capital Inc. and SB Capital Investment Corp. as joint bookrunners, joint lead arrangers and selling agents for the issuance.

“Security Bank, the joint bookrunners, and the joint lead arrangers reserve the right to revise the timetable at any time,” the lender said.

According to Security Bank, the proceeds of the ongoing fund raising activity would be used to support the bank’s lending activities and expand its funding base.

Last month, the bank announced that it has doubled its peso bond program to P200 billion from P100 billion previously.

Security Bank last tapped the domestic bond market in July last year, where it raised a record P18.5 billion as investors swarmed its bond offering. It was more than 2.3 times oversubscribed from its original issue size of P8 billion.

In 2022, Security Bank raised P30.6 billion as it tapped the domestic bond market twice. It issued P16 billion worth of fixed-rate bonds due 2024 in July and another P14.6 billion in November.

PDEx president and CEO Antonino Nakpil earlier said banks are possibly returning to the domestic bond market with their huge issuances in the second half of this year.

“We look forward to seeing the banks return as well with jumbo issues in the latter part of the third quarter and into the fourth quarter, possibly with longer term tenor issuance,” he said.