Security Bank cleared to issue P20-billion LTNCD

MANILA, Philippines — Security Bank Corp. has received the green light from the Bangko Sentral ng Pilipinas (BSP) to raise P20 billion via the issuance of long-term negotiable certificates of deposits (LTNCDs).

In a disclosure to the Philippine Stock Exchange (PSE), the country’s seventh largest bank in terms of assets, said the BSP issued MB Resolution 828 last May 30 authorizing Security Bank to issue up to P20 billion worth of LTNCDs.

In October 2017, the bank received an approval from the BSP to raise up to P20 billion through LTNCDs. Of the total amount, the bank issued P8.6 billion in November 2017 followed by another P5.78 billion in May 2018.

Security Bank also tapped the offshore debt market in September last year and raised $300 million through the issuance of five-year senior unsecured fixed rate notes under a $1 billion medium term note program to extend its term liabilities and diversify its investor and funding base.

The financial institution continues to tap both the onshore and offshore debt markets anew to finance its expansion program and augment its loan portfolio.

It announced its plan to raise P50 billion by issuing peso-denominated bonds last December to support growing lending activities and to diversify fund sources.

Security Bank is retiring P10 billion worth of unsecured subordinated notes due July 2024 ahead of schedule to save on interest payments.

Earnings of China Bank inched up 1.5 percent to P2.38 billion in the first quarter of the year from P2.35 billion in the same period last year on the back of growth across its core businesses.

Total revenues jumped by 20 percent to P7.6 billion from January to March.  Net interest income from customer loans and deposits surged by 29 percent to P4.7 billion, driven by the continued expansion of retail loans and low-cost deposits.

Retail loans expanded by 49 percent, while low-cost deposits increased 11 percent.