Security Bank raises $300 million from fixed rate notes

MANILA, Philippines — Security Bank Corp. raised $300 million from the offshore debt market as investors swarmed the first tranche of its $1 billion medium term note program.

In a disclosure to the Philippine Stock Exchange, Joselito Mape, executive vice president and chief financial officer at Security Bank, said book momentum was strong with orders totaling $1.1 billion at the peak covering the intended sizing 3.7 times.

“After pricing at the right end of the final guidance, the order book was in excess of $800 million from 68 accounts,” Mape said.

He said the offering was distributed to high-quality investors with 55 percent allocated to global fund and aasset managers, 20 percent to insurance companies, and the remaining 25 percent to banks and other investors.

Likewise, about 73 percent went to Asian investors while 27 percent were allocated to European investors.

Mape said the 4.5 percent senior unsecured fixed rate notes due September 2023 would be listed on the Singapore Stock Exchange.

The country’s sixth largest lender in terms of assets has mandated Citigroup, CLSA, MUFG, and UBS as joint lead managers and joint bookrunners.

With the establishment of the program, Security Bank will gain the flexibility to tap the international debt capital markets, subject to market conditions.

“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,” Mape said.

Moody’s Investors Service has assigned a Baa2 rating, a notch above minimum investment grade, a stable outlook on the $1 billion medium term note program.