Put your money in better hands: low minimum investment,
high interest rate, 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.
This is for investors looking for:
*For individuals: in the event of any changes in tax law, all taxes shall be for the account of the investor.
Offer Period | Nov 25 to Dec 6, 2019 |
Deadline of Submission of Documents | Dec 6, 2019 |
Settlement Date | Dec 9, 2019 |
Issue Date | Dec 17, 2019 |
Maturity Date | June 17, 2025 |
Issuer | Security Bank Corporation (“SECB” or the “Bank”) |
Instrument | Long-Term Negotiable Certificates of Time Deposit (“LTNCDs”) |
Purpose | To extend term liabilities and expand funding base, to improve peso liquidity gaps, and to fund asset build-up |
Currency | Philippine Peso (PHP) |
Issue Amount | PHP 1 billion with option to upsize |
Tenor | 5 years and 6 months |
Status | Direct, Unconditional, Unsecured, and Unsubordinated. At all times ranked pari passu with all other present and future unsecured and unsubordinated PHP-denominated obligations of the Bank |
Indicative Rate | 4.00% p.a. |
Issue Price | 100% of the face value |
Denomination | Minimum investment of PHP 50,000.00 and increments of PHP 10,000.00 thereafter |
Interest Periods | Quarterly, 30/360 day count basis |
PDIC Coverage | Insured by PDIC up to the maximum coverage per depositor of PHP500,000 |
Listing | Philippine Dealing and Exchange Corporation (“PDEx”) |
Maximize your profits with 4.00% 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 (Individual Account | Corporate Account) |
|
Signature Cards |
|
Photocopy of Valid IDs |
|
Waiver |
|
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 |
|
Submit your contact details here to receive the required documents via email.
Download and complete the forms. Then proceed to any Security Bank Branch.
Approach our Customer Advisor for interview and deposit.
Submit the forms with other required documents and the corresponding payment.
PHP 1,000,000,000 with Upsize Option Long-Term Negotiable Certificates of Time Deposit Due 2025 |
|
IMPORTANT NOTE:The following is a general summary of the terms of the Long-Term Negotiable Certificates of Time Deposit (“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 Offering Circular dated August 13, 2019 and the final Offering Circular dated September 23, 2019, as amended and supplemented by the Supplemental Offering Circular dated November 25, 2019 (collectively, the “Offering Circular”) on the offer of the LTNCDs, including the financial statements therein and the Terms and Conditions of the LTNCDs. 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 (“SECB” or the “Bank”) |
Issuer Rating |
|
Sole Lead Arranger |
|
Selling Agents |
|
Registrar and Paying Agent | Philippine Depository & Trust Corp. (“PDTC“) |
Instrument | Long-Term Negotiable Certificates of Time Deposit (“LTNCDs”) |
Currency | Philippine Peso (PHP) |
Tenor | 5 years and 6 months |
Issue Date | December 17, 2019 |
Maturity Date | June 17, 2025 |
Deal Size | PHP 1 billion with option to upsize |
Status and Ranking | Direct, unconditional, unsecured and unsubordinated |
Use of Proceeds | To extend term liabilities and expand funding base, to improve peso liquidity gaps, and to fund asset build-up |
Indicative Rate | 4.00% p.a. |
Issue Price | 100% of the face value |
Interest Periods | Quarterly, 30/360 day count basis |
PDIC Coverage | Yes, LTNCDs are covered by the Philippine Deposit Insurance Corporation (PDIC), subject to applicable rules and regulations, among others, on a maximum insurance coverage currently up to PHP 500,000.00 per depositor (including CA/SA and regular TD amounts with the Issuing Bank). |
Denomination | Minimum investment of PHP 50,000.00 and increments of PHP 10,000.00 thereafter |
Early Redemption | Yes, subject to Bangko Sentral ng Pilipinas (“BSP”) Rules and other conditions set forth in the Terms and Conditions of the LTNCDs, 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 and unpaid interest. |
Taxation | Interest received by investors will be net of applicable withholding tax.If any payments of principal and/or interest under the LTNCDs shall be subject to deductions or withholding for or on account of any present taxes, duties, assessments, or governmental charges of whatever nature that may be levied, collected, withheld, or assessed by or within the Philippines or any authority therein or thereof having the power to tax, including but not limited to documentary stamp, income, value-added or similar taxes, including interest, surcharges, and penalties thereon (the “Taxes”), then all such Taxes shall be for the account of the Holder concerned, and if the Bank shall be required by law or regulation to deduct or withhold such Taxes, then the Issuer shall make the necessary withholding or deduction for the account of such Holder; provided, that all sums payable by the Bank to tax-exempt persons shall be paid in full without deductions for Taxes or other duties, assessments or government charges, subject to the submission by the relevant Holder claiming the exemption of reasonable and acceptable evidence of such exemption to the Bank and relevant Selling Agent; and provided, further that documentary stamp tax for the primary issue of the LTNCDs, if any, shall be for the Bank’s account.
If payments of principal and/or interest under the LTNCDs will be subject to any Taxes (including any additional or new Taxes) or any change in tax treatment, arising from changes in tax laws (such as but not limited to, the Passive Income and Financial Intermediary Taxation Act) or regulations (or from changes in interpretation thereof), then such Taxes will also be for the account of the relevant Holder, and the Bank shall make the necessary withholding or deduction for the account of such Holder. 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 pre-termination, except as provided herein or in the Terms and Conditions of the LTNCDs. Unless otherwise provided by law or regulation, the Bank may treat a transfer, assignment, sale, or negotiation of the LTNCDs as a pre-termination solely for tax purposes, to determine 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 Holders and/or their counterparties, and shall not be for the account of the Bank. |
To download the LTNCD Sales Memo, click here. To download the Offering Circular, click here. To download the Offering Circular Supplement, 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.