Security Bank Corp., the sixth-largest lender in terms of assets, said Wednesday it issued $300 million of 4.5-percent senior unsecured fixed-rate notes due September 2023 as a drawdown of its $1-billion medium-term note program.
Security Bank said in a disclosure to the stock exchange the issuance followed a successful roadshow with London, Singapore, and Hong Kong investors this month.
A drawdown refers to a gradual accessing of credit funds.
“Proceeds of the notes will be used to extend term liabilities, expand funding base, improve liquidity gaps, to fund investment and other general corporate purposes,” the bank said.
It said book momentum was strong from the onset with orders totaling close to $1.1 billion at the peak covering the intended size 3.7 times. After pricing at the tight end of final guidance, the order book was in excess of $800 million from 68 accounts.
“The offering was distributed to high-quality investors with 55 percent allocated to global fund and asset managers, 20 percent to insurance companies, and the rest to banks, private banks, and other investors. It also said 73 percent was allocated to accounts in Asia and 27 percent in Europe.
“The transaction is expected to settle on Sept. 24, 2018. The notes will be listed on the Singapore Stock Exchange,” it said.
Global debt watcher Moody’s Investors Service assigned an investment grade rating to the $1-billion medium-term note program of Security Bank.
Moody’s said the rating was underpinned by Security Bank’s “baa3” baseline credit assessment and incorporated one notch of uplift to reflect Moody’s expectation of a moderate probability of support for the bank from the Philippine government in times of need.
“Security Bank’s ‘baa3’ BCA is underpinned by the bank’s above-industry-average asset quality and strong capital buffers, boosted by a capital infusion from its new strategic partner, MUFG Bank Ltd.,” it said.