Security Bank Corp., one of the largest private domestic universal banks, raised P13.5 billion from the issuance of fixed-rate bonds amid strong demand from investors.
Manila Water Co. Inc. also raised $500 million from its maiden offshore bond offering, while property developer Megaworld Corp. sold $350 million worth of bonds overseas.
Security Bank said in a statement Friday the final issue size represented a significant increase from the initial issue size of P5 billion. Given strong investor demand, Security Bank closed the offer period early.
The two-year bonds carry a fixed interest rate of 3.125 percent per annum. Minimum denominations were set for P1,000,000 and increments of P100,000 thereafter.
“We want to thank our investors and clients for the unwavering trust and support despite volatile times. Our bonds were met with strong demand and we had to increase our original issue size by 2.7x to accommodate the orders,” SCB executive vice president and treasurer Raul Martin Pedro said.
Meanwhile, Manila Water said in a disclosure to the stock exchange it issued five-year sustainability notes with fixed coupon rate of 4.375 percent per annum.
The offering is the single largest green, social or sustainability bond issued by a listed private water utility in Asia and the first ASEAN Sustainability Bond by a corporate issuer out of the Philippines.
It said with orders of nearly $1.96 billion at its peak, the notes successfully attracted active subscription from 85 quality institutional investors.
“As a member of the Ayala Group of Companies, we are very grateful for the strong market response which reflects the investors’ confidence in Manila Water’s fundamental strength and stability as a leading Asian player in the water and wastewater industry. The issuance of this sustainability bond is fully aligned with our commitment to create shared value towards achieving the targets of the UN Sustainable Development Goals especially SDG 6 which focuses on clean water and sanitation,” said Manila Water president Jose Rene Almendras.
Megaworld said in a disclosure to the stock exchange it issued $350-million senior, unsecured fixed-rate notes with a seven-year tenor and a coupon rate of 4.125 percent per annum. The notes will be listed on the Singapore Exchange Securities Trading Limited.
“Proceeds from the issuance of the notes are intended for general corporate purposes, which include, among others, financing capital expenditure, land banking and refinancing of loans,” the property developer said.
