Security Bank eyeing int’l bond market

Security Bank Corp. plans to  debut into the international bond markets in a bid to attract more foreign investors.

In a disclosure to the Philippine Stock Exchange Friday, Security Bank said it had mandated three foreign banks—ANZ, Deutsche Bank and JP Morgan—to arrange a series of fixed income investor meetings in Manila, Singapore and Hong Kong commencing on Nov. 18.

The disclosure said a “Reg S” US dollar senior fixed rate bond securities offering may follow subject to market conditions. The “Reg S” format means that the securities will be sold to global investors outside the United States.

“This is basically to widen our base of investors,” Security Bank president Alberto Villarosa said in a phone interview.

He added that it would be the bank’s first time to tap the offshore bond market. He said he could not disclose yet how much the bank would like to raise or how long the tenor of the securities will be.

Security Bank grew its nine-month net profit by 54 percent year-on-year to P6.43 billion, securing a rare slot among the few local banks that are expected to post higher full-year earnings this year compared to last year. This translated to a return on equity of 20 percent while return on assets stood at 2.3 percent.

Net interest income increased by 37 percent year-on-year to P8.5 billion in the nine-month period. Reflecting growth in its core business, Security Bank expanded its loan book by 25 percent year-on-year to P181 billion, while deposits likewise rose by 26 percent to P232 billion in the nine-month period. For every peso of deposits generated, the bank lent out 78 centavos.  The bank is on an aggressive expansion program to expand its retail banking business.