Security Bank raises $300M from US bond debut

SECURITY Bank has raised $300 million from its US dollar bond debut, boosting funds for expansion while widening its investor base.

The five-year senior notes were priced at par with a yield of 3.95 percent per annum, lower than the earlier set price guidance of 4.2 percent per annum, based on a disclosure to the Philippine Stock Exchange on Wednesday.

The senior notes will mature on Feb. 3, 2020 and are expected to be listed on the Singapore Exchange Securities Trading Ltd.  The issue date and closing date will be on Feb. 3, 2015.

The securities were sold to global investors outside the United States. The final order book was oversubscribed by 5.8 times across 187 accounts amounting to $1.75 billion.  About 58 percent of the orders came from the Philippines, 35 percent from the rest of Asia and 7 percent from Europe.

By investor type, 50 percent of the demand came from banks while 38 percent came from fund managers.

“We thank our investors for their overwhelming support as Security Bank, backed by its solid credit profile, continues to proactively support clients and the Philippine economy in this exciting era of growth,” Security Bank president and chief executive officer Alberto Villarosa said in a press statement.

ANZ, Deutsche Bank and UBS acted as joint lead managers and joint book-runners while the state-owned Development Bank of the Philippines and SB Capital acted as domestic lead arrangers.