SECURITY BANK Corp. (Security Bank) is planning to raise P20 billion in fresh funds through the issuance of long-term negotiable certificates of time deposits (LTNCD), with the offer still subject to regulatory approvals.
In a disclosure to the local bourse on Tuesday, the country’s sixth largest bank in asset terms announced it received the green light from its board of directors yesterday to issue P20 billion worth of LTNCDs.
The listed lender, however, did not disclose further details about the planned issuance.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold at the secondary market — thus, they are deemed “negotiable.”
Security Bank’s last LTNCD issuance was in August 2012 when the bank was able to successfully raise P5 billion from the instruments, more than its initial P3-billion offer.
Security Bank’s net profit reached P5.2 billion in the first half of the year, 8% up from the P4.9 billion recorded in the comparable period in 2016.
Similarly, its second quarter bottom line soared 32% to P2.43 billion from the P1.85 billion registered in the same period a year ago.
Shares in Security Bank lost P1.20 or 0.47% to close at P252.80 apiece on Tuesday. — Janine Marie D. Soliman