Security Bank raises P21 billion from issuance of 5-year corporate bonds

SECURITY BANK Corp. has raised P21 billion from the sale of five-year fixed-rate corporate bonds to support its operations.

This was the bank’s largest bond issuance to date, it said in a disclosure to the stock exchange on Wednesday.

The final issue size was upsized from the initial P5-billion plan.

“Strong investor demand prompted the bank to exercise its oversubscription option,” Security Bank said in a statement.

“Proceeds will be used to diversify the bank’s funding sources and support its lending activities across key sectors.”

The bonds that fall due in 2030 were priced at a fixed rate of 6% per annum.

They were issued out of the bank’s P200-billion peso bond and commercial paper program.

The offer period ran from Sept. 22 to Oct. 17. The papers were sold in minimum denominations of P500,000 and in increments of P100,000 thereafter.

Security Bank listed the bonds on the Philippine Dealing & Exchange Corp. on Wednesday.

“We’re grateful for the market’s confidence. This successful issuance reaffirms investor trust in our strategy and strengthens our ability to fund growth while delivering on our BetterBanking promise,” Security Bank Executive Vice-President and Financial Markets Segment Head Price Edward “Jim” C. Yap said.

Philippine Commercial Capital, Inc. and Security Bank Capital Investment Corp. were the joint bookrunners, joint lead arrangers, and selling agents for the issuance.

Security Bank last tapped the domestic bond market in July 2024, raising P20 billion from an offering of five-year fixed-rate peso corporate bonds that were priced at 6.05% per annum.

Its net income grew by 7.85% year on year to P3.04 billion in the second quarter, bringing its earnings for the first semester to P5.86 billion, up by 7.59%.

The bank’s shares climbed by P2.50 or 3.65% to close at P71.05 each on Wednesday. — Aaron Michael C. Sy