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May 27, 2024

Security Bank raises P16B in return to domestic bond market

Security Bank Corp. led by bankero Sanjiv Vohra has successfully raised P16 billion after it returned to the domestic debt market via the issuance of peso bonds.

Security Bank executive vice president and Financial Markets Segment head Raul Pedro said that the successful issuance and oversubscription is testament to investor confidence in the listed bank and its commitment to provide BetterBanking service.

“Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above the initially announced P1 billion issue size,” Security Bank said.

The bonds with a tenor of 1.5 years and a fixed rate of 3.7407 percent per annum were listed on the Philippine Dealing and Exchange Corp. (PDEx) to provide secondary market liquidity to investors who would like to trade the instruments.

Security Bank said the proceeds of the bond issuance would be used to support its lending activities and expand its funding base.

Philippine Commercial Capital, Inc. (PCCI) served as Sole Bookrunner, while PCCI and SB Capital Investment Corp. acted as Joint Lead Arrangers and Selling Agents.

Security Bank last tapped the domestic debt market in July 2020 when it raised P13.5 billion via the issuance of fixed-rate bonds or a month after it doubled its bond and commercial paper program to P100 billion to raise much-needed fund to augment its lending business and extend the tenor of the bank’s liabilities.

The bank’s bond and commercial paper program was initially established in December 2018 with an amount totaling P50 billion.