SECURITY BANK Corp. is targeting to raise at least P5 billion from its offering of five-year peso-denominated bonds launched on Monday.
The notes have a tenor of five years and one month and are priced at 5.7% per annum, Security Bank said in a disclosure to the local bourse.
The bank has the option to upsize the issue, it added.
“We’re excited about this peso bond offering, which will support our strategic initiatives and diversify our funding sources. We’re confident this offering will deliver value to our clients looking to invest in a high-quality instrument with attractive returns,” Security Bank Executive Vice-President and Financial Markets Segment Head Arnold Q. Bengco said.
Proceeds from the issuance will be used for lending and expansion of Security Bank’s funding base, the lender added.
The bonds will be issued out of the bank’s P200-billion peso bond and commercial papers program.
Security Bank will offer the bonds at a minimum investment amount of P100,000 with additional increments of P10,000.
The offer period began on Monday and will run until Aug. 13, unless adjusted by the bank. The lender said it will list the bonds on the Philippine Dealing and Exchange Corp. on Aug. 20.
Philippine Commercial Capital, Inc. and SB Capital Investment Corp. were tapped as the joint bookrunners, joint lead arrangers, and selling agents for the issuance.
Security Bank last tapped the domestic bond market in July 2023, where it raised P18.5 billion from the issuance of fixed-rate corporate bonds due in 2025.
The bonds were priced at 6.425% per annum.
Proceeds from the issue will be used to diversify the bank’s funding sources and support its lending activities, the listed lender earlier said.
Security Bank’s net income rose by 11.4% year or year to P2.63 billion in the first quarter amid growth in the bank’s retail and micro, small, and medium enterprise businesses.
Its shares closed at P62.75 apiece on Monday, declining by 25 centavos or 0.4% from the previous day’s finish. — AMCS
