Security Bank raises $400M from five-year debt

MANILA, Philippines — Security Bank Corp. has issued $400 million in senior unsecured notes after pricing the offshore debt offer as the bank led by tycoon Frederick Dy seeks fresh capital for planned expansion moves.

In a stock exchange filing on Thursday, Security Bank said the fixed-rate notes would pay 5.5 percent per year, due on May 14, 2029.

Security Bank, the country’s eighth-largest bank, noted that the bonds were marketed at an initial pricing guidance of US treasuries plus 140 basis points. The transaction is expected to settle on May 14.

The bank said in a statement orders reached more than $1.5 billion, covering the final book size by more than 3.75 times. Security Bank added that it was the largest order book size in its history of debt issuances.

According to the bank, the bonds were part of its $1-billion medium-term note program.

READ: Security Bank puts up P1-B expansion cache

“We’re very pleased about the strong demand and successful pricing of our dollar bond issuance,” said Arnold Bengco, Security Bank executive vice president and head of the financial markets segment.

“This transaction reflects the market’s continued confidence in Security Bank’s credit strength and growth prospects,” Bengco said.

Branch network expansion

There was strong interest from global fund and asset managers, banks, insurance companies, private banks, and other institutions, according to Security Bank.

MUFG and UBS were tapped as joint global coordinators, while Standard Chartered Bank and SB Capital were joint bookrunners.

Security Bank earlier said it planned to open 72 branches in the next two to three years as part of a P1-billion expansion plan, meant to reach more customers in underserved areas and increase its customer base.

The lender currently has 328 branches across the country, with Security Bank expecting to open its 350th by the end of the year.

Security Bank currently has 1.7 million clients.