Commercial bank Security Bank Corp. plans to issue long-term negotiable certificates of deposit (LTNCD) to raise P20 billion additional funds for assets expansion.
In a statement, Security Bank said it has submitted to its board of directors a proposal on Monday to issue the P20-billion LTNCD, seeking to raise funds for the “expansion of earning assets in the coming periods, as well as provide customers and investors with suitable investment products.”
“The LTNCD issuance will be subject to regulatory approval and prevailing market conditions. The LTNCD issuance will be done in multiple-tranche format whereby there may be different maturity dates per tranche,” Security Bank said.
Prior to Security Bank, another listed bank, Metropolitan Bank and Trust Co. (Metrobank), announced last week that its board of directors approved the issuance of the P20 billion LTNCD, also to raise funds.
Security Bank added 36 branches in 2013, 34 Security Bank branches and 2 branches of thrift bank subsidiary Security Bank Savings, raising the count to a total of 244 branches nationwide.
Incorporated in 1951, Security Bank is a commercial bank primarily engaged in the financial market, corporate and investment banking segment, as well as the commercial and retail banking sector.