Security Bank Corporation (PSE: SECB), the Philippines’ sixth largest private bank in terms of assets as of March 31, 2019, has successfully issued today its Fixed Rate Peso Corporate Bonds due 2021.
Security Bank raised PhP18 billion worth of bonds at the lower end of its pricing range at 5.875% per annum, with a tenor of 2 years. Due to strong demand for the bonds, Security Bank exercised its oversubscription option and accepted offers above the initially announced PhP5 billion issue size. Minimum denominations were set for PhP500,000 and increments of PhP100,000 thereafter.
The bonds were likewise listed today at the Philippine Dealing & Exchange Corp. (PDEx), to provide secondary market liquidity to investors who would like to trade the instruments.
Security Bank offered the bonds to support its lending activities and to expand its funding base.
In his message, Security Bank Executive Vice President and Treasurer Raul Pedro said that the successful issuance and oversubscription is testament to investor confidence in Security Bank and its commitment to provide BetterBanking.
“Over the last few years, Security Bank has made the right moves to provide value to our customers – consistently growing our customer base and winning awards both locally and abroad. This maiden issuance in the Peso Bond market is meant to diversify our funding sources, creating a path to tap the capital markets again in the near future in order to optimize our funding costs and continue our focus on delivering best in class returns to our shareholders.”
The transaction was a joint effort of Security Bank and sole arranger and book runner, Deutsche Bank.
For more information, please visit [www.securitybank.com/]
About Security Bank:
Security Bank Corporation is one of the country’s leading universal banks serving retail, commercial, corporate and institutional clients. The Bank, which was incorporated on May 8, 1951 and started commercial banking operations on June 18, 1951, was the first private and Filipinocontrolled bank of the post-World War II period. The Bank was publicly-listed with the Philippine Stock Exchange (PSE: SECB) in 1995.
Security Bank is an independent bank in the Philippines with core businesses in Wholesale Banking, Retail Banking and Financial Markets, with a solid niche among the mass affluent Filipino-Chinese community. It is among the leading local players in government fixed income securities distribution, capital markets services, foreign exchange and derivatives products distribution, equities brokerage, and cash management. Security Bank continues to grow its consumer finance business. The Bank has a total of 305 branches all over the country and 764 ATMs as of March 31, 2019.
In 2016, the Bank entered into a strategic partnership with MUFG Bank, Ltd., the largest bank in Japan and member of the Mitsubishi UFJ Financial Group. The transaction was completed on 1 April 2016, with MUFG infusing capital of PhP36.9 billion, representing a 20% stake in the Bank.
In Q1-2019, Security Bank posted a net income of PhP2.38 billion, a 1.5% increase versus yearago level and up 15% from quarter-ago. Customer loans grew by 12% to PhP412 billion while deposits increased by 10% to PhP461 billion as of year-on-year from 2018. This translated to a 15% increase in net interest income to PhP5.8 billion. The Bank reported total assets of PhP763.4 billion for a 9% year-on-year growth rate. Return on assets was 1.3%.
Security Bank is currently rated Baa2 by Moody’s and BBB- by S&P.