Security Bank raises P13.5B from red hot 2-year bonds

/ 04:30 AM July 25, 2020

Lender Security Bank has raised P13.5 billion from an issuance of two-year bonds, which were warmly received by the cash-awash local financial market.

The offering was upsized from the base offer of P5 billion as the bank took advantage of strong investor demand. This prompted Security Bank to shorten the offering period, a disclosure to the Philippine Stock Exchange on Friday read.


The two-year bonds were priced to yield 3.125 percent per annum.

The bonds were sold at minimum denominations of P1 million and in increments of P100,000 thereafter.


“We want to thank our investors and clients for the unwavering trust and support despite volatile times. Our bonds were met with strong demand and we had to increase our original issue size by 2.7 times (base offer) to accommodate the orders,” Security Bank executive vice president and treasurer Raul Martin Pedro said.

The bonds would be carved from Security Bank’s P100-billion bond and commercial paper program. The program was initially established in December 2018 with an amount totaling P50 billion but subsequently doubled by the board of directors.

Philippine Commercial Cap­­i­tal Inc. (PCCI) is the sole bookrunner for this issuance. PCCI and SB Capital Investment Corp. are the joint lead arrangers and selling agents.

By tapping the local bond market, Security Bank has taken advantage of low local interest rates to prepare funds for future expansion. It has likewise diversified its source of funding.

An aggressive monetary easing by the Bangko Sentral ng Pilipinas has driven local interest rates to record lows. —DORIS DUMLAO-ABADILLA

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TAGS: Philippine Commercial Capital Inc., Security Bank
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