Security Bank closes offer of 5-year bonds
SECURITY BANK Corp. on Monday closed the offer period for its five-year peso-denominated bonds, more than a week earlier than the original plan, amid strong investor demand, it said on Tuesday.
“Security Bank Corp. has ended its bond offer period early as volume significantly exceeded target,” it said in a disclosure to the stock exchange.
“Prevailing market conditions also allowed the bank to augment its returns to its clients. Previously marketed at a fixed rate of 5.7000% per annum, the coupon has been adjusted to 6.0500% per annum,” the bank added.
Security Bank was looking to raise at least P5 billion from its offer of five-year bonds, with an option to upsize. It has yet to announce the final issue size.
“Proceeds of the offering will be used to support the bank’s lending activities and expand its funding base,” Security Bank said.
The offer period for the papers started on July 8 and was originally set to end on Aug. 13.
The lender will issue, settle, and list the bonds on the Philippine Dealing and Exchange Corp. on Aug. 20.
The bonds were offered in scripless form in denominations of P10,000 each for a minimum investment of P100,000.
The papers may be traded in multiples of P10,000 in the secondary market, the bank said.
The five-year bonds will be issued out of the bank’s recently upsized P200-billion peso bond and commercial papers program.
Philippine Commercial Capital, Inc. and SB Capital Investment Corp. were tapped as the joint bookrunners, joint lead arrangers, and selling agents for the issuance.
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.
The papers were priced at 6.425% per annum.
The listed lender’s net income rose by 11.4% year on year to P2.63 billion in the first quarter amid growth in its retail and micro, small, and medium enterprise businesses.
Security Bank’s shares closed unchanged at P64 apiece on Tuesday. — AMCS