Security Bank Launches Offer of PhP10B Basel III Compliant Tier 2 Notes
Manila—(PHStocks)—Security Bank Corp. (PSE: SECB) has launched the public offer of its Basel III Compliant Tier 2 Notes in the aggregate principal amount of up to PhP10 Billion. The public offer period runs from 19 June to 3 July 2014, with issue date on 11 July 2014. The bank however, has the right to close the offer period earlier.
The notes will have a term of 10 years, with an issuer’s call option after five years. The notes may be purchased in minimum denominations of PhP500,000 and in increments of PhP100,000. The interest on the Notes will be paid quarterly.
Security Bank is issuing the Notes to further increase its total Capital Adequacy Ratio in order to support the continuing growth of the Bank’s financial assets. The Bank is the 8th largest in total assets among private domestic universal banks in the country with total assets of PhP377 billion, 7th largest in loans with loan portfolio of PhP166 billion, and 8th largest in capital at PhP42 billion as of March 31, 2014. The bank posted 17% year-on-year growth in net income to PhP1.43 billion in the first quarter of 2014, with a return on shareholders’ equity of 13.8% which is among the highest in the industry, and healthy Basel 3 capital ratios of 14% Total CAR and 13.5% Tier 1 CAR.
Moreover, Security Bank’s notes issuance is in line with the more prudent capital regulations implemented by the Bangko Sentral since January 2014 following the stricter Basel III global standard for banks.
Security Bank has mandated Deutsche Bank, The Hongkong and Shanghai Banking Corporation Limited (HSBC), and Standard Chartered Bank as the Joint Lead Arrangers of the offering and as Selling Agents. Security Bank will be a Limited Selling Agent and Multinational Investment Bancorporation will be the Market Maker and a Selling Agent. The Trust Services Group of the Development Bank of the Philippines will be the Public Trustee.
Security Bank has been a recipient of numerous awards among which, in 2013, Security Bank was Best Managed Bank in the Philippines by The Asian Banker and in 2012, Security Bank was Bank of the Year in the Philippines by The Banker of London, and the Strongest Bank in the Philippines by The Asian Banker. The Bank has been operating for 63 years since it was established in 1951.