Security Bank to raise P5B from bond market
Security Bank Corp. will raise at least P5 billion from the debt market, taking advantage of current market optimism amid expectations of monetary policy easing.
In a regulatory filing on Monday, the bank led by tycoon Frederick Dy said the notes would be offered from Sept. 22 until Oct. 17. These will be listed on the Philippine Dealing and Exchange Corp. on Oct. 29.
Also, Security Bank has an oversubscription option in case of high demand from investors.
“We’re excited about this peso bond offering as it further strengthens Security Bank’s funding base and supports our growth and lending activities,” said Jim Yap, Security Bank executive vice president and financial markets segment head.
“At the same time, it gives investors a high-quality peso investment with stable, predictable returns—underscoring the bank’s financial strength and commitment to our clients,” Yap said in a statement.
Investors may pitch in a minimum of P500,000 with additional increments in multiples of P100,000.
Philippine Commercial Capital Inc. and Security Bank Capital Investment Corp. were tapped as joint bookrunners, joint lead arrangers and selling agents for the issuance.
The bonds, which are part of Security Bank’s P200-billion bond and commercial papers program, were offered after the US Federal Reserve cut rates for the first time this year.
This comes as a crucial move, especially since the Bangko Sentral ng Pilipinas typically mirrors policy changes in the United States.
It also sends a positive signal in markets across the globe, especially since rate cuts boost investor confidence.
In the first six months of 2025, loan growth buoyed the earnings of Security Bank by 8 percent to P5.9 billion. It is also attributed to the monetary policy easing cycle.
Net interest income totaled P24.3 billion, up by 12 percent. As of end-June, home loans had jumped by 17 percent, while credit cards surged by 43 percent and auto loans by 54 percent.
Security Bank is expecting higher loan demand to drive growth this year, especially since the fourth quarter was historically strong for home and auto loans.
