SECURITY BANK Corp. on Thursday said it raised P18.5 billion from the issuance of fixed-rate peso corporate bonds due 2025.
The size of the issuance, with a rate of 6.425% per annum, is the bank’s largest to date as the bonds were oversubscribed amid strong demand, the lender said in a disclosure to the local bourse.
The amount raised is 131.25% higher than the minimum issue size of P8 billion. Minimum denominations were set for P1 million and increments of P100,000 thereafter.
Security Bank Executive Vice-President and Financial Markets Segment Head Arnold Q. Bengco said the high demand for the notes was due to investor confidence in the bank.
The bonds were listed on the Philippine Dealing & Exchange Corp. (PDEx) on Thursday for interested investors or traders.
The lender said proceeds from the issuance will be used to “diversify its funding sources and support its lending activities.”
Philippine Commercial Capital, Inc. (PCCI) and the bank’s investment management arm SB Capital Investment Corp. are the joint lead arrangers and selling agents for the issuance. PCCI is also the sole bookrunner for the offer.
The bonds were offered from June 26 to July 7 and were issued out of the bank’s P100-billion bond and commercial paper program.
In the first quarter, Security Bank’s net income fell by 13.39% year on year to P2.36 billion.
Its shares closed at P83.60 apiece on Thursday, up by 1.77% or P1.45 from its previous finish. — Aaron Michael C. Sy
