Security Bank Corp. said Thursday it raised P18.5 billion from the issuance of peso-denominated fixed-rate corporate bonds due 2025 on strong demand from investors.
“This is the largest issue size of the bank to date. Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above its minimum P8-billion issue size,” the bank said in a disclosure to the stock exchange.
Security Bank executive vice president and financial markets segment head Arnold Bengco said the successful issuance and oversubscription proved investors’ sustained confidence in the bank and its commitment to provide BetterBanking service.
The bonds have a tenor of 1.5 years at 6.4250 percent per annum. Minimum denominations were set for P1 million, with increases of P100,000.
The bonds were listed at the Philippine Dealing & Exchange Corp. to provide secondary market liquidity to investors who would like to trade the instruments.
The bank said it issued the bonds to diversify funding sources and support lending activities.
Security Bank tapped Philippine Commercial Capital Inc. as sole bookrunner and PCCI and SB Capital Investment Corp. as joint lead arrangers and selling agents.
Security Bank remained one of the leading lenders in the country in terms of assets. It posted a net profit of P2.4 billion in the first three months of 2023 on sustained growth across its business segments.
Net interest margin increased to 4.06 percent, up by 14 basis points over the previous quarter. Net interest income also rose 3 percent quarter-on-quarter.
