Put your money in better hands: 4.50% to 4.75% interest p.a., low minimum investment, tax-exempt earnings and more!
LTNCD or Long Term Negotiable Certificate of Deposit is a long-term instrument sold by Security Bank perfect for those looking for a safe investment with high returns and want the flexibility of a negotiable instrument.
Offer Period: April 10, 2018 – April 20, 2018
Issue Date: May 2, 2018
Maximize your profits with 4.50% to 4.75% p.a. interest rate with quarterly interest payouts!
LTNCDs are negotiable and are Insured by PDIC up to P500,000. They will be listed in the Philippine Dealing Exchange (PDEx).
For individual investors if held for more than 5 years.
PHP 50,000 – Even lower than opening balances of some bank accounts.
|Application to Purchase form||
|Completed Client Sustainability Questionnaire||
|Photocopy of Valid IDs||
|Consularized proof of tax domicile||
For Existing SBC clients – certain documentary requirements may be waived (For Both Individual and Corporate Clients).
|SEC Articles of Incorporation and By-Laws||
|Original, Duly Notarized Certificate of the Corporate Secretary approving the investment||
|Documentary proof of investor’s tax exempt status (if applicable)||
|List of natural persons||
|Minimum Issue Size of PHP 5,000,000,000 with an Oversubscription Option
Long-Term Negotiable Certificates of Deposit Due 2023
|IMPORTANT NOTE: The following is a general summary of the terms of the Long-Term Negotiable Certificates of Deposit (the “LTNCDs”) to be issued by Security Bank Corporation. This summary is derived from, and should be read in conjunction with, the full text of the Information Memorandum on the offer of the LTNCDs, including the financial statements therein. In the event of any inconsistency with the terms set out herein, the Terms and Conditions of the LTNCDs will prevail.|
|ISSUER||Security Bank Corporation (the “Bank”)|
|Joint Lead Arrangers||
|Registrar and Paying Agent||Philippine Depository & Trust Corp|
|Instrument||Long-Term Negotiable Certificates of Deposit (LTNCDs)|
|Currency||Philippine Peso (PHP)|
|Tenor||5 years and 6 months|
|Issue Date||May 2, 2018|
|Maturity Date||November 2, 2023|
|Deal Size||Minimum Issue Size of PHP 5,000,000,000 with an Oversubscription Option|
|Status and Ranking||Direct, unconditional, unsecured and unsubordinated|
|Use of Proceeds||To extend term liabilities and expand funding base, to improve peso liquidity gaps, to fund asset build-up and to prepare for the Basel III implementation of the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR)|
|Rate||4.50% to 4.75% p.a.|
|Issue Price||100% of the face value|
|Interest Periods||Quarterly, 30/360|
|PDIC Coverage||Insured by PDIC up to the maximum coverage per depositor of PHP500,000|
|Denomination||Minimum investment amount of PHP50,000 and increments of PHP10,000 thereafter|
|Early Redemption||Yes, subject to BSP Rules and other conditions, the Bank shall have the option (but not the obligation) to redeem in whole but not in part, the LTNCDs on any Interest Payment Date at face value plus accrued interest|
|Taxation||Tax-exempt for qualified individuals if held for more than 5 years. LTNCD Holders may transfer or assign their LTNCDs to another holder who is not a Prohibited Holder and such transfer or assignment shall not be considered a pretermination; provided, that, the Bank may treat such transfers or assignment as a pretermination solely for purposes of determining the applicable rate of withholding tax on the interest earned by the transferor-LTNCD Holder. Documentary stamp taxes as well as other taxes due on the transfer of the LTNCDs, if any, shall be for the account of the relevant LTNCD Holders and/or their counterparties, and shall not be for the account of the Bank. Unless otherwise provided by law or regulation, the Bank shall treat a transfer, assignment, sale, or negotiation of the LTNCDs as a pretermination solely for purposes of determining the applicable rate of withholding tax on the interest earned by the transferor-LTNCD Holder.|
To download the LTNCD Sales Memo, click here.
Tax on capital gains:
Since the LTNCDs have a maturity of more than five (5) years from Issue Date, any gains realized from the sale of the LTNCD will be exempt from capital gains tax.
Changes in taxation:
In the event that there is a change in the tax treatment of the LTNCDs because of changes in tax laws or regulations or interpretations thereof, where payments to qualified individual LTNCD Holder would be subject to deduction or withholding for or on account of tax or would give rise to any obligation of the Issuer to account for any tax in the Philippines; and such obligation cannot be avoided by the Issuer taking reasonable measures available to it, the LTNCD Holder agrees that the Issuer will withhold the applicable taxes on the interest income earned by the LTNCD Holder and deduct the same from the proceeds of the LTNCDs to be received by the LTNCD Holder.
For purposes hereof, a “subsidiary” means, at any particular time, a company which is then directly controlled, or more than fifty percent (50%) of whose issued voting equity share capital (or equivalent) is then beneficially owned by the Bank and/or one or more of its subsidiaries or affiliates. For purposes hereof, an “affiliate” means, at any particular time, an entity where at least 20%, but not exceeding 50%, of its outstanding voting stock is owned by the Bank. For a company to be “controlled” by another means that the other (whether directly or indirectly and whether by the ownership of share capital, the possession of voting power, contract or otherwise) has the power to appoint and/or remove all or the majority of the members of the board of directors or other governing body of that company or otherwise controls or has the power to control the affairs and policies of that company.