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July 13, 2024

Security Bank seeks P5 billion boost with fixed-rate peso bond sale

Security Bank Corp. is launching a new fixed-rate peso bond offering to raise at least P5 billion, strengthening its capital base and diversifying funding sources.

The offer, open from July 8 to August 13, targets investors with a minimum investment of P100,000, with additional increments of P10,000. The bonds will have a tenor of five years and one month, offering a fixed interest rate of 5.7000% per annum.

“We’re excited about this peso bond offering, which will support our strategic initiatives and diversify our funding sources,” said Arnold Bengco, Security Bank’s Executive Vice President and Head of Financial Markets Segment.

“We’re confident this offering will deliver value to our clients looking to invest in a high-quality instrument with attractive returns.”

The issuance is part of Security Bank’s existing P200 billion bond and commercial paper program.

The bank, established in 1951, boasts total assets exceeding P887 billion as of March 31, 2024.

Its extensive network of over 327 branches and 660 ATMs provides a strong foundation for the offering.

Philippine Commercial Capital, Inc. and SB Capital Investment Corporation will act as joint bookrunners, joint lead arrangers, and selling agents for the issuance.

The bonds are targeted to be listed on the Philippine Dealing and Exchange Corporation (PDEX) by August 20, 2024, ensuring secondary market liquidity for investors.