Security Bank bags ₧16B from fixed-rate bonds sale

SECURITY Bank Corp. said last Wednesday it raised P16 billion in fixed rate peso corporate bonds due 2024. The mid-sized bank said the debt carries a rate of 3.7407 percent 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,” according to the country’s 10th–biggest lender by assets said. “Minimum denominations were set for P1 million and increments of P100,000 thereafter.”

The bonds were listed at the Philippine Dealing and Exchange Corp. to provide secondary market liquidity to investors who would like to trade the instruments.

The shares of Security Bank closed at P89 on Wednesday’s trading, down by P0.50 from the previous close.

Security Bank offered the bonds to support its lending activities and expand its funding base.

Raul Martin A. Pedro, the bank’s executive vice president and financial markets segment head, said the issuance and oversubscription is testament to investor confidence in the Bank and its commitment to provide better banking service.

Philippine Commercial Capital Inc. (PCCI) was the deal’s sole bookrunner.

The PCCI and SB Capital Investment Corp. acted as joint lead arrangers and selling agents for the issuance.

Award

LAST Tuesday, the lender said its officers were again recognized by the Asset Publishing and Research Ltd. as among the country’s best local currency bond individuals in sales for 2022 at the latest “Asian Local Currency Bond Benchmark Review.”

In its latest announcement, Security Bank’s Vice President and Head of Sales for its Institutional desk, Angeline Sia-uy, together with two Fixed Income Securities Division sales officers, were “highly commended in the sales category.” Sia-uy was consistently ranked in the review for over ten years, according to the lender. “We’re glad to be highly commended in the review—these show that we were able to understand and help our clients navigate this volatile environment,” Uy was quoted in a statement as saying.

The lender said the benchmark review provides data on investors’ product needs and the market penetration of banks active in local currency bonds. More than 400 fixedincome investors across ten Asian markets are surveyed: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.