Security Bank boosts coffer with record P21B from bond foray
Security Bank has raised a historic-high P21 billion from the debt market as a policy easing cycle continues and as the bank pursues more lending activities.
Tycoon Frederick Dy-led Security Bank on Wednesday told the stock exchange that demand for its issuance had gone “well above” its initial target of raising P5 billion.
The bonds, which are due in 2030, carry a fixed rate of 6 percent per annum.
These are also part of Security Bank’s P200-billion bond and commercial papers program.
Proceeds would be used to diversify Security Bank’s funding sources and support lending activities, the company noted.
“We’re grateful for the market’s confidence,” Security Bank executive vice president Jim Yap said in a statement.
“This successful issuance reaffirms investor trust in our strategy and strengthens our ability to fund growth while delivering on our BetterBanking promise.”
Security Bank’s record bond offer comes amid a monetary policy easing cycle, which typically sends a positive signal for investors and boosts confidence. This often results in greater demand for fixed-income securities, especially since these promise a higher yield for investors.
Philippine Commercial Capital Inc. and Security Bank Capital Investment Corp. were tapped as joint bookrunners, joint lead arrangers and selling agents for the issuance.
In September, Security Bank qualified for the FTSE Asia Pacific Small Cap Index, joining over 5,800 stocks across the region and gaining exposure to more international investors.
The FTSE Asia Pacific Small Cap Index, whose stocks have a combined market capitalization of $7 trillion, is part of the broader FTSE Global Equity Index Series that covers large, mid, small and micro cap stocks across the world.
FTSE conducts a regular review of its indices to ensure that these are up-to-date and accurate. It considers the “liquidity and investability” of the stocks in assessing which to include and which to kick out.
