EconomyEditor's PickSecurity Bank raises P14.6B from bond offering

November 10, 2022

SECURITY Bank Corp. raised P14.6 billion from its bond offering, almost five times as much as its initial P3-billion program. — BW FILE PHOTO

SECURITY BANK CORP. raised P14.6 billion from its offering of fixed-rate bonds, more than its initial P3-billion program, following strong demand from investors.

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 Thursday.

“Security Bank raised P14.6-billion worth of bonds at 5.3% 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 its minimum P3-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 papers 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.

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

In July, Security Bank also raised P16 billion from 1.5-year corporate bonds, more than the original plan of P1 billion, as the offer was likewise oversubscribed. The papers were also part of the lender’s P100-billion peso bond and commercial paper program.

Security Bank recorded a higher net income in the second quarter of 2022 on the improved performance of its core businesses and lower credit provisions.

It booked an attributable net income of P3.52 billion in April-June, up by 139.4% from the P1.47 billion in the same period in 2021.

This brought its attributable net profit for the first half to P6.25 billion, more than double the P3.12 billion seen in the comparable year-ago period.

Security Bank was the country’s ninth-largest lender in terms of assets with P796.78 billion and seventh in terms of capital with P123.41 billion as of end-June, based on Bangko Sentral ng Pilipinas data.

Its shares closed at P87.95 apiece on Thursday, down by 1.07% or 95 centavos from the previous finish. — K.B. Ta-asan

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