Security Bank Corp. has completed a P10-billion fund-raising from the sale of debt notes qualifying as supplementary or tier 2 capital.
The notes, which are eligible as capital under the Basel 3 capital adequacy framework, will have a term of 10 years, with the bank having an option to redeem after five years. The notes, which will be issued on July 11, will bear a coupon rate of 5.375 percent a year and interest payments are due on a quarterly basis.
“We take this opportunity to thank once again our customers and investors for their strong support. Through the tier 2 notes, Security Bank continues to create value for our customers by delivering products vital for this period of economic growth in our country,” said Security Bank president and chief executive Alberto Villarosa.
Deutsche Bank AG, Manila Branch, The Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank acted as joint lead arrangers and selling agents. Security Bank is a limited selling agent and Multinational Investment Bancorporation is the market maker and selling agent. The trust services group of the state-owned Development Bank of the Philippines is the public trustee.
The only major bank that chalked up higher profits in the first quarter compared to last year, Security Bank aims to sustain a return on equity (ROE) of at least 12 percent this year.
Security Bank executive vice president Eduardo Olbes said loan demand continued to be very strong while deposits were also doing well.
Based on an equity base of about P42 billion at present, a 12-percent ROE suggests a prospective full-year net profit of at least P5.04 billion, matching last year’s attributable profit at the minimum. Doris C. Dumlao