Security Bank Corp. is concluding the offer period of its P5-billion bond transaction earlier on the back of strong demand.
In a disclosure on Tuesday, the listed bank said that the bond offer period will end on July 3.
“We appreciate the overwhelming support that our investors and clients have been giving our bond offer. In view of the strong demand we have received so far, we are shortening the offer period to end on July 3, 2020, from the initial target end of offer period of July 15, 2020,” Security Bank Treasurer and Executive Vice President Raul Martin A. Pedro was quoted in a statement as saying.
Each bond carries a tenor of 2 years and a fixed rate of 3.125-percent per annum. Minimum denominations were set for P1 million and increments of P100,000 thereafter.
The 69-year-old bank said it intends to list the bonds on the Philippine Dealing and Exchange Corp. on July 24, 2020.
Security Bank assigned Philippine Commercial Capital Inc. and SB Capital Investment Corp. as joint lead arrangers and selling agents for the issuance.
The transaction will be issued from the bank’s P100-billion bond and commercial paper program. It was initially established with an aggregate amount of P50 billion in December 2018 before the bank’s board of directors approved to increase it to P100 billion.
Security Bank raised P2.31 billion from the issuance of long-term negotiable certificates of deposits in December last year. It was in line with the initiative of the country’s sixth-largest private domestic universal bank to diversify sources of funding and finance expansion plans.
The bank saw its net profits increase by 21 percent to P2.9 billion in the first quarter despite hiking provisions for credit losses amid the pandemic. It earmarked an allowance for bad loans at P5.7 billion in the first three months, which already surpassed the 2019 full-year provision of P4.2 billion. Established in 1951, Security Bank has a total of 309 branches and 839 ATMs as of March 31, 2020.
Security Bank shares slid 0.96 percent, or P1, to end at P103 each amid the 1.68-percent rise for the main index on Tuesday.