Security Bank plans P20 B notes issuance

 MANILA, Philippines — Listed Security Bank Corp. is planning to raise as much as P20 billion from the issuance of long-term negotiable certificates of deposit (LTNCD).

In a disclosure to the Philippine Stock Exchange (PSE), Security Bank said its board of directors approved the issuance of up to P20 billion in LTNCD in its meeting yesterday.

At the same time, the board also gave the go-signal for Security Bank to call on its P10 billion unsecured subordinated notes, issued on July 11, 2014 at 5.375 percent. The notes have a maturity date of July 11, 2024, but is callable on July 12, 2019.

However, the bank said both activities are still subject to the approval of the Bangko Sentral ng Pilipinas (BSP).

Security Bank president and chief executive officer Alfonso Salcedo earlier said the financial institution intends to tap both the onshore and offshore debt markets anew this year.

In October 2017, the bank received an approval from the Bangko Sentral ng Pilipinas to raise up to P20 billion through LTNCDs.

Security Bank also tapped the offshore debt market in September last year and raised $300 million through the issuance of five-year senior unsecured fixed rate notes under a $1 billion medium term note program to extend its term liabilities and diversify its investor and funding base.

The bank also announced last December its plan to raise P50 billion by issuing peso-denominated bonds to support growing lending activities and to diversify fund sources.

In 2018, Security Bank’s net income dropped by 16.5 percent to P8.6 billion from a record of P10.3 billion in 2017 due to a decline in trading gains, higher expenses, and income tax payments.

On the other hand, the bank’s total assets grew by 10 percent to P767 billion.