Security Bank raises P14.6B from bond sale
Security Bank Corp. raised P14.6 billion from a bond sale after upsizing the offer nearly five times amid strong demand from investors.
In a statement on Thursday, Security Bank announced the completion the fixed-rate peso offer, which was due on 2024 and would pay an annual interest rate of 5.3 percent.
“Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above its minimum P3 billion issue size,” the lender said.
The proceeds would be used to support lending activities and to expand its funding base.
Security Bank executive vice president and financial markets segment head Raul Pedro said “the successful issuance and oversubscription is testament to investor confidence in the bank.”
The bonds were listed at the Philippine Dealing & Exchange Corp., allowing investors a mechanism to easily trade the securities.
Security Bank earlier tapped Philippine Commercial Capital Inc. as sole bookrunner. PCCI and SB Capital Investment Corp. also acted as joint lead arrangers and selling agents
The 71-year-old lender earlier recorded a first half 2022 net income of P6.2 billion, which was double from the previous year due to higher interest earnings and lower credit expenses.
Net interest income during the period reached P14.4 billion, up 6 percent from the same period last year. Meanwhile, non-interest income hit P4.8 billion.
Recovering business conditions also allowed the lender to set aside P408 million as provisions in the first half, lower by 83 percent.
Moreover, gross the non-performing loan ratio decreased to 3.28 percent from 3.65 in the previous quarter, it said.
Security Bank had total assets of P766 billion at the end of June this year. Established in 1951, it has a total of 316 branches and 629 automated teller machines, or ATMs.
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