MANILA, Philippines [April 11, 2018] Security Bank Corporation (“Security Bank”), the Philippines’ fifth largest private domestic universal bank in terms of assets as of December 31, 2017, launched its second tranche of Long Term Negotiable Certificates of Deposit (CDs) on April 10, 2018, in line with the Bangko Sentral ng Pilipinas’ approval to issue CDs as embodied in Monetary Board Resolution No. 1704 dated October 5, 2017.
Security Bank is offering the CDs to better manage its liabilities and ratios, while also expanding its 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 depositor 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 also act as Selling Agents together with Security Bank and Multinational Investment Bancorporation.
For the second tranche, Security Bank intends to offer at least P5.0 billion worth of CDs, and may exercise an oversubscription option depending on demand. It will have a tenor of 5 years and 6 months and is being marketed at an indicative range of 4.50% to 4.75% p.a.. The final rate for the CDs will be determined during the public offer period, which will run from April 10 to April 20, 2018. Minimum denominations have been set for P50,000 and increments of P10,000 thereafter.
Security Bank will list the CDs at the Philippine Dealing and Exchange Corporation, to provide secondary market liquidity to investors who would like to trade the instruments. For more information, please visit www.securitybank.com/ltncd.