• Security Bank briefs global investors on $1 B notes issue

Security Bank Corp. is set to woo investors from London, Singapore and Hong Kong through a series of investor meetings for its planned $1 billion medium term note program.

The country’s sixth largest lender in terms of assets has mandated Citigroup, CLSA, MUFG, and UBS as joint lead managers and joint bookrunners to arrange a series of fixed income investor meetings and calls in London, Singapore, and Hong Kong starting Sept. 4.

With the program, Security Bank will gain the flexibility to tap the international debt capital markets, subject to market conditions.

The notes will be listed on the Singapore Stock Exchange.

Moody’s Investors Service has assigned a Baa2 rating, a notch above minimum investment grade, on the $1 billion medium term note program.

Tokyo-based MUFG Bank Ltd. infused P37 billion in April 2016 in exchange for a 20 percent stake in Security Bank.

Last October, the Bangko Sentral ng Pilipinas gave Security Bank the green light to issue up to P20 billion worth of long term negotiable certificates of deposits (LTNCDs) in one or more tranches.

The bank has so far raised P5.78 billion during the first tranche of the fund raising activity last May to help the bank manage its liabilities and ratios, while also expanding its funding and investor base.

Security Bank’s earnings slipped 18 percent to P4.3 billion due to lower trading gains amid volatile markets as well as the higher provision for income tax.

Philippine banks have been diversifying their funding sources by tapping the offshore debt market via a medium term note program. These include Ayala-led Bank of the Philippine Islands with a record $600 million, Yuchengco-led Rizal Commercial Banking Corp. with $450 million in two tranches and Aboitiz-led Union Bank of the Philippines with $500 million, among others.