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Security Bank Corp. is raising at least P8 billion from a fixed-rate peso bond offering out of its P100-billion Peso Bond and Commercial Papers Program.
Photo Insert: Security Bank will list the Bonds on the Philippine Dealing and Exchange Corp. (PIDEX} on July 13, to provide secondary market liquidity to investors who would like to trade the instruments.
The bank said In a disclosure to the Philippine Stock Exchange (PSE), the offering has a minimum issue size of P8 billion with an oversubscription option although it did not mention the amount.
The Bonds will have a tenor of 1.5 years and will be marketed at a fixed rate of 6.4250% per annum. The public offer period will run from June 26, 2023, to July 7, 2023. Minimum denominations have been set for P1 million and increments of P100 thousand thereafter.
Proceeds will be used to support the Bank’s lending activities and expand its funding base.
Security Bank will list the Bonds on the Philippine Dealing and Exchange Corp. (PIDEX} on July 13, to provide secondary market liquidity to investors who would like to trade the instruments.
Security Bank has mandated Philippine Commercial Capital, Inc. as Sole Bookrunner, and PCCI and SB Capital Investment Corp. as Joint Lead Arrangers and Selling Agents for this issuance.
The bank reported a 13.4% decline in net profit to P2.4 billion in the first quarter of 2023 from P2.7 billion in the same period last year. On a sequential quarter-on-quarter basis, net profit increased 18%.
Net interest margin increased to 4.06%, up by 14 basis points versus the previous quarter. Net interest income likewise increased by 3.0% quarter-on-quarter. On a year-on-year basis, total revenues grew 6.0% to P9.8 billion in the first quarter from P9.3 billion in the same period last year.
Net interest income increased 7.0% to P7.5 billion while total non-interest income was up 2.0% year-on-year to P2.3 billion.
Non-interest income was driven by service charges, fees and commissions, which was up 2.0% year-on-year. Pre-provision operating profit was P3.7 billion. The Bank set aside P616 million as provisions for credit losses in the first quarter of 2023.
