SECURITY Bank Corp. on Tuesday listed its P20-billion fixed-rate Peso corporate bonds due 2029 at the Philippine Dealing and Exchange Corp. (PDEx), touted as the bank’s largest issue size to date, with a tenor of five years and one month at 6.05 percent per annum.
“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,” said Security Bank Executive Vice President Arnold Bengco.
“We’re grateful for their support and will strive to keep delivering value to our clients and stakeholders,” he added.
The bank was said to have exercised its oversubscription option and accepted offers above the initial P5 billion issue size, but still ended it early due to strong demand for the bonds and the volume significantly exceeding the target.
The offer period began on July 8 and ended on August 5, a week earlier than the previously scheduled closing on August 13.
The bond’s initial coupon rate was 5.7 percent per year but was raised to 6.05 percent, which the bank said was “within the initial range expected, and the market conditions allowed the Bank to augment the return to investors.”
“Proceeds of the offering will be used to support the Bank’s lending activities and expand its funding base,” Security Bank said.
Philippine Commercial Capital Inc. (PCCI) was tapped to be the sole bookrunner, while PCCI and SB Capital Investment Corp. served as joint lead arrangers and selling agents for the bond issuance.
Security Bank’s share price was down by 70 centavos to close at P61.30 apiece on Tuesday.
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