Security Bank eyes at least P5B from bond offering

SECURITY BANK Corp. is looking to raise at least P5 billion from an offering of fixed-rate peso-denominated bonds, marking its return to the domestic debt market after over a year.

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The bank on Monday launched a public offer of five-year peso bonds with a minimum issue size of P5 billion and an oversubscription option, it said in a disclosure to the stock exchange.

The offering will run until Oct. 17, unless ended earlier by the bank or the transaction’s bookrunners and arrangers.

The bonds carry a fixed rate of 6% per annum. They will be issued out of the bank’s P200-billion peso bond and commercial paper program.

Security Bank will use the bond offer’s proceeds to support its lending business and expand its funding base, it said.

“We're excited about this peso bond offering as it further strengthens Security Bank’s funding base and supports our growth and lending activities. At the same time, it gives investors a high-quality peso investment with stable, predictable returns — under scoring the Bank’s financial strength and commitment to our clients,” Security Bank Executive Vice President and Financial Markets Segment Head Price Edward “Jim” C. Yap said.