SECURITY Bank Corp. has raised P18 billion from an oversubscribed bond issue after originally offering P5 billion.

The bank said that the fixed-rate two-year peso bonds were priced at the lower end of the range at 5.875% per annum.

“Security Bank offered the bonds to support its lending activities and to expand its funding base,” the bank said in a statement posted on the Philippine Stock Exchange (PSE) website.

Security Bank Executive Vice President and Treasurer Raul Martin A. Pedro said in the statement, “This maiden issuance in the peso bond market is meant to diversify our funding sources, creating a path to tap the capital markets again in the near future in order to optimize our funding costs and continue our focus on delivering best-in-class returns to our shareholders.”

The bonds were offered at a minimum of P500,000 and increments of P100,000 thereafter.

The bank said that the bonds were also listed Friday at the Philippine Dealing and Exchange Corp. (PDEx) to supply the secondary market for those who would like to trade the instruments.

Deutsche Bank served as the sole arranger and book runner of the transaction in cooperation with Security Bank.

This month, Security Bank said it received approval from the Bangko Sentral ng Pilipinas (BSP) to issue up to P20 billion in long-term negotiable certificates of deposit (LTNCD).

Security Bank earlier reported a first quarter net profit rise of 15% year-on-year to P2.38 billion.

Security Bank closed at P170 Friday, down 0.87%. — Reicelene Joy N. Ignacio