Security Bank raises P14.6 billion from bonds

MANILA, Philippines — Security Bank Corp. has raised P14.6 billion as investors swarmed its fixed-rate peso-denominated bonds after a successful return to the domestic debt market.

Raul Pedro, executive vice president and head of the financial markets segment at Security Bank, said the successful issuance and oversubscription is testament to investor confidence in the bank and its commitment to provide “BetterBanking” service.

Pedro said the bank was originally looking at raising just around  P3 billion.

But “due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above its minimum P3 billion issue size,” the bank said in a statement.

The 1.5-year bonds due 2024, carrying an interest of 5.3 percent per annum, were listed at the Philippine Dealing and Exchange Corp. (PDEx) yesterday to provide secondary market liquidity to investors who would like to trade the instruments.

Proceeds of the fund raising activity will be used to support the bank’s lending activities and expand its funding base.

In June 2020, Security Bank doubled its bond and commercial paper program to P100 billion to raise much-needed funds to augment its lending business and extend the tenor of the bank’s liabilities. The program was initially established in December 2018 with an amount totaling P50 billion.

It last tapped the domestic bond market in July 2020 when it raised P16 billion via the 1.5-year peso bonds with a fixed rate of 3.7407 percent.