Security Bank Corp. said Tuesday it raised P20 billion from the issuance of fixed-rate peso corporate bonds, its largest bond offering to date.
The bonds with a tenor of 5 years and 1 month carry an interest rate of 6.05 percent per annum, the bank said in a disclosure to the stock exchange.
Security Bank said it exercised its oversubscription option and accepted offers above its minimum P5-billion issue size amid strong demand.
It also ended its bond offer period early as volume exceeded its target.
“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,” said Security Bank executive vice president and financial markets segment head Arnold Bengco.
The bonds were listed in the Philippine Dealing & Exchange Corp. (PDEx).
The bond offering will diversify the bank’s funding sources and support its lending activities.
Philippine Commercial Capital Inc. (PCCI) acted as the sole bookrunner, and PCCI and SB Capital Investment Corp. were the joint lead arrangers and selling agents.
Security Bank posted a net profit of P5.4 billion in the first half of the year, up 11 percent year-on-year as revenues grew 24 percent to P25.7 billion
Aside from Security Bank, two other banks BDO Unibank Inc. and Bank of the Philippine Islands also recently raised fresh funds through the bond market.
BDO raised P55.7 billion from issuance of its third peso-denominated ASEAN sustainability bond in July, which was more than 11 times oversubscribed versus the original offer of P5 billion.
BPI also raised P33.7 billion from the issuance of sustainability bonds early this month. The offering was 6.7 times oversubscribed from an initial issue size of P5 billion.
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