Security Bank Corp. said Thursday it issued $400 million of 5.50-percent senior unsecured fixed-rate notes due May 14, 2029 as a drawdown of its board-approved $1-billion medium term note program.
The transaction was announced on the back of a series of global investor calls held on May 6, 2024.
The bank said it would use the proceeds to expand funding base, fund investments and other general corporate purposes.
“We’re very pleased about the strong demand and successful pricing of our dollar bond issuance. This transaction reflects the market’s continued confidence in Security Bank’s credit strength and growth prospects. The issuance also diversifies our funding sources and enhances our ability to serve our clients across various segments and sectors,” said Arnold Bengco, Security Bank executive vice president and financial markets segment (FMS) head.
The bonds were marketed at an initial pricing guidance of US treasuries plus 140bps. Orders reached more than $1.5 billion, covering the final book size by more than 3.75x.
This was the largest orderbook size in the bank’s history of debt issuances. The strong interest in the notes led to a historic spread of 110bps for the bank.
The offering generated strong interest from a diverse pool of investor accounts, consisting of global fund and asset managers, banks, insurance companies, private banks and other institutions. The transaction is expected to settle on May 14, 2024.
The notes will be listed on the Singapore Exchange (SGX) and are expected to have an issue rating of Baa2 by Moody’s.
Security Bank tapped MUFG and UBS as joint global coordinators, along with Standard Chartered Bank and SB Capital as joint bookrunners.
Security Bank had total assets of P872 billion as of Dec. 31, 2023. It has 328 branches and 663 ATMs, cash recycler machines (CRMs) and cash acceptance machines (CAMs) nationwide.