Security Bank sets rate for bond issue

MANILA, Philippines - Security Banking Corp. plans to issue a five-year, senior unsecured dollar bonds with an initial guiding rate of 4.2 percent.

In a report, the bank said interest basis will be semi-annual, with settlement date on Feb. 3 this year.

“The bank reserves the right to extend term liabilities and expand foreign currency deposit unit funding base,” it said.

Security Bank said it expects the issue to be given a BB plus, (stable) rating by Standard & Poor’s Rating Services Inc. (S&P).

Australia and New Zealand Banking Corp. (ANZ), Deutsche Bank  and UBS Bank are the lead bookrunners while Development Bank of the Philippines (DBP) and SB Capital are the domestic lead arrangers for the issuance.

Security Bank president and chief executive officer Alberto Villarosa said the bank is tapping the international bond market to attract foreign investors.

Earlier, S&P assigned a ‘BB+’ long-term issuer credit rating for Security Bank. It likewise gave a “stable” long-term outlook.

The international credit rating agency based its rating on the bank’s business position, capital and earnings, risk position, funding, and liquidity metrics.

S&P said Security Bank’s management and strategy is proactive and prudent, which should continue to support an operating performance above industry average.