Tycoon Frederick Dy’s Security Bank Corp. raised P16 billion from the sale of bonds after a massive upsizing due to strong investor demand.
Security Bank said in a stock exchange filing the 3.7407-percent fixed-rate bonds, maturing in 1.5 years, were issued on Wednesday.
Security Bank initially planned to issue P1 billion in bonds from July 4 to July 15. The offer size was eventually expanded 16 times “due to strong demand.”
“Security Bank offered the bonds to support its lending activities and expand its funding base,” the lender said.
The bonds were listed on the Philippine Dealing & Exchange Corp., it added.
Minimum denominations were set for P1 million and increments of P100,000 thereafter.
Security Bank executive vice president and financial markets segment head Raul Pedro said in the stock exchange filing the bond issue and oversubscription signaled “investor confidence” in the lender.
Security Bank earlier tapped Philippine Commercial Capital Inc. as sole bookrunner, while PCCI and SB Capital Investment Corp. acted as joint lead arrangers and selling agents.
Established in 1951, Security has a total of 316 branches and 658 ATMs nationwide.
It recorded a 66-percent jump in profits to P2.7 billion in the first quarter of 2022 amid the growth in its core businesses, lower credit provisions and normalized income tax provisions.
Gains during the first quarter were bolstered by a 5-percent increase in net interest income to P7 billion.
Likewise, non-interest income increased by 8 percent to P2.3 billion while service charges, fees and commissions jumped 22 percent to P1.3 billion.
Security Bank said other non-interest income excluding securities trading gains and fee income also hit P1 billion, up 168 percent.