Security Bank Completes its Inaugural Offshore Issuance of US$ 300 Million Senior Unsecured Notes

Security Bank Corporation (“Security Bank”) is pleased to announce that it has, on 27 January 2015, priced its inaugural issuance of US$ 300 million senior unsecured notes (“Senior Notes”).

Security Bank decided to access the international markets now, proactively extending the duration of its US Dollar liabilities. The Senior Notes were priced at par with a yield of 3.95% and will pay a coupon at the rate of 3.95% per annum on a semi-annual basis. The Senior Notes which received a bond issue rating of BB+ from S&P will mature on 3 February 2020 and are expected to be listed on the Singapore Exchange Securities Trading Limited. The issue date and closing will be on 3 February 2015.

The Senior Notes received strong investor demand. The final orderbook was oversubscribed by 5.8 times across 187 accounts, amounting to US$1.75bn. Distribution by geography: Philippines: 58%; Asia (ex-Phils): 35%; Europe: 7%. Distribution by investor type: Banks: 50%; Fund Managers: 38%; PBs: 7%; Others: 5%

“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 Mr. Alberto S. Villarosa said.

ANZ, Deutsche Bank and UBS acted as the Joint Lead Managers and Joint Bookrunners for the Senior Notes issuance, while Development Bank of Philippines and SB Capital acted as Domestic Lead Arrangers.

About Security Bank

Security Bank is the 8th largest private domestic universal bank in the country with total assets of PHP 366 billion (US$ 8.2 billion), 7th largest in loans with net loans and receivables of PHP 181 billion (US$ 4.0 billion), and 8th largest in total deposits at PHP 232 billion (US$ 5.2 billion) as of September 30, 2014.

Security Bank has been a recipient of numerous awards, amongst which, in 2014, the Bank was Best Overall Domestic Provider of FX Services in the Philippines as voted by Corporates and Financial Institutions by Asiamoney, and Best Service Provider and e-Solutions Partner Bank in the Philippines by The Asset. In 2013, the Bank was Best Managed Bank in the Philippines by The Asian Banker of Singapore. 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.

Note: USD PHP = 44.875, being the PDEx Closing Rate on Sep 30, 2014.

 

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

This announcement does not constitute or form a part of any offer to sell, offer to purchase, a solicitation of an offer to purchase, an offer to sell or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws of the United States. There will be no offering of the securities in the United States.  Nothing in this announcement shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful. A rating is not a recommendation to buy, sell or hold the Securities and may be subject to suspension, reduction or withdrawal at any time by the rating agency.” at the end of the disclaimer.

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