Bond sales at Security Bank generate P16 billion
21 July 2022
SECURITY Bank Corp. made the announcement that its fixed rate peso corporate bonds due in 2024 were successfully sold, resulting in the generation of P16 billion in new funds.
The lending institution stated in a disclosure that was published on the website of the Philippine Stock Exchange on Wednesday that the bonds have a tenor of 1.5 years and are priced at 3.7407 percent on an annual basis.
According to the statement, “due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers in excess of the initially announced P1-billion issue size.” It went on to say that minimum denominations were later set at P1 million and increments of P100,000 respectively.
According to Security Bank, the bonds were listed on Wednesday at the Philippine Dealing & Exchange Corp., providing access to the liquidity of the secondary market for investors who wished to trade the securities.
According to the bank’s official statement, the bond sales were distributed so that the institution could “support its lending activities and expand its funding base.”
According to Raul Pedro, executive vice president and head of Security Bank’s Financial Markets Segment, the successful issue and oversubscription demonstrates investor confidence in the lender and its commitment to providing “better banking” service. Raul Pedro also stated that the successful issue and oversubscription demonstrates investor confidence in the lender and its commitment to providing “better banking” service.
For this offering, Security Bank has designated PCCI as the sole bookrunner, PCCI and SB Capital Investment Corp. as the joint lead arrangers and selling agents, and PCCI as the sole selling agent.
The bonds were distributed to investors as part of the bank’s program to distribute a total of 100 billion pesos worth of bond sales and commercial paper.
According to their website, Security Bank is “one of the best capitalized domestic private universal banks in the country.” Its total capital adequacy ratio was 18.6 percent, and its common equity tier 1 ratio was 18.1 percent. The total value of all the assets was 707 billion pesos.
Furthermore, it reported a 66 percent year-on-year increase in net income in the first quarter of 2022, reaching P2.7 billion as a result of the expansion of its core operations, lower credit provisions, and normalized income tax provisions. This was achieved as a result of a normalized income tax provision structure.
