Security Bank Corp. has tapped the international markets to raise $300 million via a five-year dollar-denominated bond issue to finance expansion plans and for other corporate purposes.
In a statement, the bank said it has completed the issuance of $300 million senior unsecured notes due February 2020. The bonds were priced at a yield of 3.95 percent and a coupon rate of 3.95 percent to be paid on a semi-annual basis.
The notes, which received a BB+ rating from S&P, will be issued and closed on February 3 and will then be listed on the Singapore Exchange Securities Trading Ltd.
ANZ, Deutsche Bank and UBS were the joint lead managers and bookrunnners, while the Development Bank of the Philippines and SB Capital were appointed as domestic lead arrangers.
“We thank our investors for their overwhelming support as Security Bank, backed by its solid credit profile, continues to proactively support clients and the Philippine economy in this exciting era of growth,” Security Bank president and chief executive officer Alberto S. Villarosa said in a statement.
The debt raising was met by strong demand, with the final order book being 5.8 times oversubscribed across 187 accounts amounting to $1.75 billion. Some 58 percent of the orders came from the Philippines while 35 percent were from the rest of Asia and 7 percent from Europe.
Banks were the major investors, taking up 50 percent of the issuance, while fund managers, PBs and other investors accounted for 38 percent, 7 percent and 5 percent of the notes, respectively.
In the first nine months of 2014, Security Bank was the only domestic bank that recorded net income growth despite an industry-wide decline in trading gains. Its nine months net profit went up to P6.49 billion from the P4.2 billion recorded the previous year on solid growth in its core business.
As of end-September last year, Security Bank had added 10 online branches, raising the count to a total of 254 branches nationwide, while its automated teller machines (ATM) expanded to 468 units.
Incorporated in 1951, Security Bank is a commercial bank primarily engaged in the financial markets segment, corporate and investment banking segment, as well as the commercial and retail banking sector.