Security Bank’s $300-M notes issue oversubscribed

MANILA, Philippines - Security Banking Corp. has completed its first $300-million senior unsecured notes issuance which was oversubscribed nearly six times.

“The final orderbook was oversubscribed by 5.8 times across 187 accounts, amounting to $1.75 billion,” the bank said in a report to the local bourse yesterday.

In terms of geographic distribution of bond investors, 58 percent originated from the Philippines, another 35 percent from the rest of Asia, and seven percent from Europe.

In terms of type of investor, half came from the banking sector, 38 percent from fund managers, and seven percent from private banks.

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

The notes were priced at par with a yield of 3.95 percent  and will pay coupon at the rate of 3.95 percent per annum on a semi-annual basis.

The bonds received an issue rating of BB plus from Standard & Poor’s Rating Services Inc. (S&P), and a BB stable from Fitch Ratings Inc.

It will mature on February 2020, and it will be listed at the Singapore Exchange Securities Trading Ltd. issue date and closing date will be on Feb. 3 this year.

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

Security Bank is the seventh largest private domestic universal bank in the country with total assets of P366 billion (roughly $8.2 billion), seventh largest in loans with net loans and receivables of P181 billion (roughly $4 billion), and eighth largest in total deposits of P232 billion ($5.2 billion) as of September 2014.