Security Bank to raise P5B from bonds issuance

Security Bank Corp. is set to raise P5-billion in fresh funds through the issuance of peso-denominated bonds.

In a disclosure to the Philippine Stock Exchange on Tuesday, Security Bank said the P5-billion worth of fixed rate bonds may be upsized depending on demand.

The bonds will have a tenor of two years and will be marketed at a fixed rate of 3.125% per annum, the bank said.

The public offer period will run from June 23, 2020 to July 15, 2020.

The minimum denominations have been set for P1,000,000 and increments of P100,000 thereafter.

Security Bank said it will list the bonds on the Philippine Dealing and Exchange Corp. on July 24, “to provide secondary market liquidity to investors who would like to trade the instruments.”

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 said.

The bank earlier said the funds to be raised from the bond program will be used to “diversify its funding sources and to support future lending activities.”

Security Bank said it 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 the issuance.—AOL, GMA News