Security Bank Corp has raised P21 billions from the sale of five-year fixedRate corporate bonds to support their operations.
In the information given to the stock exchange on Wednesday, the bank said that this was the biggest bond issue of the bank till date.
The size of the final issue was increased from the initial P5-billion plan.
“Strong demand from investors prompted the bank to exercise its oversubscription option,” Security Bank said in a statement.
“The proceeds will be used to diversify the bank's funding sources and support its lending activities in key sectors.”
The bond due in 2030 was priced at a fixed rate of 6% per annum.
These were issued from the Bank's P200 billion peso bond and commercial paper program.
The offer period runs from September 22 to October 17. The papers were sold in minimum denominations of P500,000 and in increments of P100,000 thereafter.
Securities Bank listed the bonds on Philippine Dealing and Exchange Corp. on Wednesday.
“We are grateful for the market's confidence. This successful issuance reaffirms investor confidence in our strategy and strengthens our ability to fund growth while delivering on our BetterBanking promise,” said Price Edward “Jim” C. Yap, Executive Vice President and Head of the Financial Markets Division of Securities Bank.
Philippine Commercial Capital, Inc. and Security Bank Capital Investment Corp. There were joint bookrunners, joint lead arrangers and selling agents for the issue.
Security Bank last tapped the domestic bond market in July 2024, raising P20 billion from an offering of five-year fixed-rate peso corporate bonds priced at 6.05% per annum.
Its second-quarter net income rose 7.85% year-on-year to P3.04 billion, beating first-semester earnings by 7.59% year-on-year to P5.86 billion.
The bank's shares closed at P71.05, up P2.50 or 3.65% on Wednesday. , Aaron Michael C. Cy
