Security Bank raises P16 billion from offer of 1.5-year peso bonds

SECURITY BANK Corp. has raised P16 billion from 1.5-year corporate bonds, more than the original plan of P1 billion as the offer was oversubscribed.

The bank said in a disclosure to the stock exchange that the bonds maturing in 2024 were successfully issued and listed on the Philippine Dealing & Exchange Corp. on Wednesday.

“Security Bank raised P16 billion worth of bonds at 3.7407% per annum, with a tenor of 1.5 years. Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above the initially announced P1-billion issue size,” the lender said.

“Security Bank offered the bonds to support its lending activities and expand its funding base,” it added.

Security Bank Executive Vice-President and Financial Markets Segment Head Raul Martin A. Pedro said the successful issuance and oversubscription is testament to investor confidence in the lender.

The bonds were issued out of Security Bank’s P100-billion peso bond and commercial paper program.

The offer period for the bonds was July 5-15. The bonds were offered at a minimum investment of P1 million and increments of P100,000 thereafter.

The lender tapped Philippine Commercial Capital, Inc. (PCCI) to be the sole bookrunner for the issuance, it said in a previous stock exchange disclosure.

The joint lead arrangers and selling agents for the transaction were PCCI and SB Capital Investment Corp.

Security Bank recorded a higher net income in the first three months of the year amid lower loan loss buffers and an improvement in its core earnings.

The lender’s net profit rose by 66% to P2.7 billion in the first quarter. This translated to a return on shareholders’ equity of 8.81%, while return on assets stood at 1.55%.

It was the 10th biggest private bank in the country with total assets of P707 billion as of end-March.

Security Bank shares closed at P89 apiece on Wednesday, down by 0.56% or 50 centavos. — K.B. Ta-asan