Security Bank Corporation is raising at least P8 billion from a fixed-rate peso bond offering out of its P100 billion Peso Bond and Commercial Papers Program.
In a disclosure to the Philippine Stock Exchange, the bank said that the offering has a minimum issue size of P8 billion with an oversubscription option although it did not mention the amount.
The Bonds will have a tenor of 1.5 years and will be marketed at a fixed-rate of 6.4250 percent per annum. The public offer period will run from June 26, 2023 to July 7, 2023.
Minimum denominations have been set for P1 million and increments of P100 thousand thereafter.
Proceeds will be used to support the Bank’s lending activities and expand its funding base.
Security Bank will list the Bonds on the Philippine Dealing and Exchange Corporation on July 13, 2023 to provide secondary market liquidity to investors who would like to trade the instruments.
Security Bank has mandated Philippine Commercial Capital, Inc. as Sole Bookrunner, and PCCI and SB Capital Investment Corporation as Joint Lead Arrangers and Selling Agents for this issuance.
The bank reported a 13.4 percent decline in net profit to P2.4 billion in the first quarter of 2023 from P2.7 billion in the same period last year. On a sequential quarter-on-quarter basis, net profit increased 18 percent.
Net interest margin increased to 4.06 percebnt, up by 14 basis points versus previous quarter. Net interest income likewise increased 3 percent quarter-on-quarter.
On a year-on-year basis, total revenues grew 6 percent to P9.8 billion in the first quarter from P9.3 billion in the same period last year.
Net interest income increased 7 percent to P7.5 billion while total non-interest income was up 2 percent year-on-year to P2.3 billion. Non-interest income was driven by service charges, fees and commissions, which was up 2 percent year-on-year.
Pre-provision operating profit was P3.7 billion. The Bank set aside P616 million as provisions for credit losses in the first quarter of 2023.