Security Bank upsizes bond float to P13.5 B

Published July 24, 2020, 10:00 PM

by James A. Loyola

Security Bank Corporation has raised P13.5 billion from the issuance of fixed rate bonds, a significant upsize from the initial issue size of P5 billion given strong investor demand.

In a disclosure to the Philippine Stock Exchange, Security Bank said the oversubscription prompted it to close the offer period for the bonds early. The 2-year bonds carry a fixed interest rate of 3.125 percent per annum.

“We want to thank our investors and clients for the unwavering trust and support despite volatile times,” said Security Bank Executive Vice President and Treasurer Raul Martin Pedro.

He noted that, “Our Bonds were met with strong demand and we had to increase our original issue size by 2.7 times to accommodate the orders.”

The Bonds will be issued out of the Bank’s P100 billion Peso Bond and Commercial Paper Program (Program).

The Program was initially established in December 2018 with an aggregate amount totaling P50 billion and had been subsequently increased to P100 billion as approved by the Bank’s Board of Directors. Security Bank has mandated Philippine Commercial Capital, Inc. (PCCI) as Sole Bookrunner, and PCCI and SB Capital Investment Corporation as Joint Lead Arrangers and Selling Agents for this issuance.