MANILA, Philippines May 02, 2018 Security Bank Corporation (“Security Bank”), the Philippines’ fifth largest private bank in terms of assets as of December 31, 2017, has successfully issued its second tranche of Long Term Negotiable Certificates of Deposit (“CDs”) today, in line with the Bangko Sentral ng Pilipinas’ approval to issue CDs dated October 5, 2017.
For the second tranche, Security Bank raised P5.781 billion worth of CDs at the lower end of its pricing range at 4.5% per annum, with a tenor of 5 years and 6 months. Due to strong demand for the CDs, Security Bank exercised its oversubscription option and accepted offers above the initially announced P5 billion issue size. Minimum denominations were set for P50,000 and increments of P10,000 thereafter.
The CDs were likewise listed today at the Philippine Dealing & Exchange Corp., to provide secondary market liquidity to investors who would like to trade the instruments.
Security Bank offered the CDs to better manage their liabilities and ratios, while also expanding their funding and investor base. CDs have been an effective way for banks to raise cost-effective funding, while offering a new investment product to their own deposit base, most of whom are looking for long term assets that provide higher yields than traditional time deposits.
HSBC and Standard Chartered Bank were mandated as Joint Lead Arrangers and Bookrunners, and were also the Selling Agents together with Security Bank and Multinational Investment Bancorporation.
For more information, please visit www.securitybank.com/ltncd.