Security Bank starts bond offer
SECURITY BANK Corp. on Monday started an offer of 1.5-year peso bonds and is looking to raise at least P8 billion in fresh funds to help fund its loans.
The offer has an oversubscription option and will have a fixed rate of 6.425% per annum, the lender said in a disclosure to the stock exchange on Monday.
“The bonds will be issued out of the bank’s P100-billion peso bond and commercial papers program. Proceeds will be used to support the bank’s lending activities and expand its funding base,” Security Bank said.
The minimum investment is set at P1 million and increments of P100,000 thereafter.
The offer period for the papers is set to run until July 7, unless closed earlier by the bank.
Philippine Commercial Capital, Inc. (PCCI) and the bank’s investment management arm SB Capital Investment Corp. are the joint lead arrangers and selling agents for the issuance.
PCCI is also the sole bookrunner for the offer.
“Security Bank will list the bonds on the Philippine Dealing and Exchange Corp. on July 13, 2023 to provide secondary market liquidity to investors who would like to trade the instruments,” the lender said.
Security Bank’s net income fell by 13.39% year on year to P2.36 billion in the first quarter.
Its shares closed at P82.20 apiece on Monday, up by 0.24% or 20 centavos from its previous finish. — AMCS
