Security Bank (PSE: SECB) successfully raised P6.06 billion in its offer of Long-Term Negotiable Certificates of Deposit (LTNCD), marking the second time the bank has tapped the debt capital markets this year.
This issuance was driven by solid demand from both retail and institutional investors, resulting in total subscriptions of P6.06 billion, exceeding the original offer of P5 billion, and allowing the bank to successfully price the LTNCD at 4.00 percent despite rising interest rates and broader market volatility.
SECB Executive Vice President and Treasurer Raul Pedro said this issuance has firmly placed the bank’s credit amongst retail investors.
“The LTNCD gives the investing public the chance to further express their confidence in Security Bank’s stability and ability to grow.”
The P6.06 billion drawdown marks the first tranche of SECB’s P20 billion approval from the Bangko Sentral ng Pilipinas.
The issue date was set last September 23, 2019, with March 23, 2025 as maturity date.
The LTNCD issuance is part of the bank’s efforts to diversify its funding sources and support business expansion plans.
Deutsche Bank AG, Manila Branch (DB) acted as the Sole Lead Arranger and Selling Agent, assisted by Security Bank. The Bank would like to thank its clients and the investing public for their continued confidence and support for this transaction.
Security Bank is among the six largest private domestic universal banks in the Philippines by total assets (at P767 billion) as of December 31, 2018.
The bank has been operating for 68 years since it was established in 1951.
Security Bank’s major awards received in 2019 are: The Best Retail Bank in the Philippines for 2019 by The Asian Banker and Deposit Product of the Year – “All Access Account” by The Asian Banker; and Best Bank in the Philippines and Best SME Bank in the Philippines by Alpha Southeast Asia.