Security Bank ends bond offer period early
Tycoon Frederick Dy-led Security Bank Corp. cut short its P5-billion bond offer by a week after demand had “significantly exceeded” the bank’s target.
Security Bank on Tuesday said the offering had ended on Monday, Aug. 5. It was originally scheduled to close on Aug. 13.
The country’s eighth largest bank likewise increased the yield for investors to 6.05 percent per annum from 5.7 percent previously.
Issuance, settlement and listing on the Philippine Dealing and Exchange Corp. (PDEx) will be on Aug. 20.
A minimum investment of P100,000 was set, with an option to add investments in increments of P10,000.
The notes, which will mature in five years and one month, is part of Security Bank’s P200-billion bond and commercial papers program.
“We’re excited about this peso bond offering, which will support our strategic initiatives and diversify our funding sources,” Arnold Bengco, executive vice president and head of financial markets at Security Bank, said earlier.
The bank said proceeds from the issuance would be used to support its lending activities and expand funding base.
Philippine Commercial Capital Inc. and SB Capital Investment Corp. were tapped as the joint bookrunners, lead arrangers and selling agents for the issuance.
Security Bank earlier said it planned to “nearly double” its loans by the end of next year as it sees growing interest in renewable energy infrastructure development.
Eduardo Olbes, Security Bank chief financial officer, said they wanted P40 billion in new loans within the next two years, coming from the P43.6-billion total as of last year.
In 2023, almost half of Security Bank’s total qualified green and social loans were for renewable energy projects, totaling P20.6 billion.
Security Bank’s net profit in the January to March period rose by 11 percent to P2.6 billion on higher consumer and retail loans despite high interest rates.
PDEx expects P400 billion in domestic bond listings this year amid prospects of interest rate cuts that could mean higher bond prices for issuers.
So far, PDEx has seen at least P177.14 billion worth of bond listings this year.
