Security Bank Corporation (“Security Bank” or the “Bank”) announced that it has closed the public offer period for its issuance of Basel III Compliant Tier 2 Notes (“the Notes”) on July 3, 2014. The Notes were well-received by the market and saw strong demand from both institutional and retail investors. This enabled the Bank to raise the PHP10 billion worth of the Tier 2 Notes.
“We take this opportunity to thank once again our customers and investors for their strong support. Through the Tier 2 Notes, Security Bank continues to create value for our customers by delivering products vital for this period of economic growth in our country,” said Security Bank President and Chief Executive Officer Mr. Alberto S. Villarosa.
The Notes will have a tenor of 10 years, with the Bank having an option to redeem after five years. The Notes will bear a coupon rate of 5.375% per annum and interest payments are due on a quarterly basis. The issue date is on July 11, 2014. Parties to the transaction include Deutsche Bank AG, Manila Branch, The Hongkong and Shanghai Banking Corporation Limited, and Standard Chartered Bank as Joint Lead Arrangers and as Selling Agents. Security Bank is a Limited Selling Agent and Multinational Investment Bancorporation is the Market Maker and a Selling Agent. The Trust Services Group of the Development Bank of the Philippines is the Public Trustee.
Security Bank is the 8th largest in total assets among private domestic universal banks in the country with total assets of PHP 377 billion, 7th largest in loans with loan portfolio of PHP 166 billion, and 8th largest in capital at PHP 42 billion as of March 31, 2014. The Bank posted 17% year-on-year growth in net income to PHP 1.43 billion in the first quarter of 2014, with a return on shareholders’ equity of 13.8% which is among the highest in the industry, and healthy Basel III capital ratios of 14% Total CAR and 13.5% Tier 1 CAR.
Security Bank has been a recipient of numerous awards amongst which, in 2013, Security Bank was Best Managed Bank in the Philippines by The Asian Banker and in 2012, Security Bank was Bank of the Year in the Philippines by The Banker of London, and the Strongest Bank in the Philippines by The Asian Banker. The Bank has been operating for 63 years since it was established in 1951.
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